Newscasts - Highly shorted Krispy Kreme, GoPro surge in latest meme stock frenzy
23/07/2025 18:15
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_heagwqqm&referenceId=tag:reuters.com,2025:newsml_RW198523072025RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: Krispy Kreme and GoPro were among the companies riding the latest meme stock rally on Wednesday, as retail traders latched on to the highly shorted names a day after piling into the shares of department store company Kohl's. Lisa Bernhard has more. Short Link: https://refini.tv/46kNxQn Video Transcript: Meme stocks are back with a vengeance, and now it's Krispy Kreme that finds itself at the center of the latest trading frenzy. Retail investors on Wednesday gobbled up shares of the doughnut chain, sending its beaten-down stock up as much as almost 39%, adding to a nearly 27% surge a day earlier. Also riding the newest meme stock wave is camera maker GoPro, shares of which soared as much as 73% on Wednesday, after rising 41% to around $2 the prior day. The recent meme stock rage in which retail investors pour into heavily shorted stocks came after Kohl's surged nearly 38% on Tuesday, with the highest daily inflow from mom-and-pop traders in about three years, according to Vanda Research. The rally revived memories of the Reddit-driven meme stock phenomenon of 2021 when amateur investors pushed up shares of video-game retailer GameStop and theater chain AMC, burning hedge funds that were on the other side of the trade. With the broader stock market soaring, individual investors are betting on riskier assets, including cryptocurrencies, amid a resilient economy and easing trade tensions. But the risk-on euphoria could portend trouble ahead, says Eric Diton, President and Managing Director of The Wealth Alliance. Meme stocks are rocking against SPACs, which were dead, or rocking. Bitcoin just made a new high. You are seeing all those signs again of rampant excess speculation. Just like I was bullish when everyone was negative, this makes me tuck my horns in. I am cautious here, not in a rush to get really huge money to work. Some market participants attributed the rally to bullish posts on X last week by EMJ Capital portfolio manager Eric Jackson, who said his hedge fund had taken a position in real estate site Opendoor Technologies, projecting its shares to hit $82 in the long term. The stock, which drew heavy retail interest, has soared more than 400% this month. Opendoor was down nearly 25% Wednesday morning to about $2.18 a share. EMJ Capital did not immediately respond to a Reuters request for comment.