Meme Stocks Rally as Krispy Kreme and GoPro Climb

Retail traders have reignited a meme stock rally this week, pushing shares of Krispy Kreme and GoPro sharply higher despite little change in either company’s fundamentals or strategy.

Both companies saw double-digit gains on July 22. Krispy Kreme jumped nearly 27%, followed by further increases into the next trading day, while GoPro rose more than 40% ahead of the July 23 market open and surged another 45% by midday. 

Neither firm released earnings reports, press releases, or corporate updates during the week that might explain the price action. That absence of news, coupled with aggressive price movement, has fueled comparisons to the speculative meme stock surges of 2021.

The rally appears driven by high short interest levels, algorithmic triggers, and viral activity on social media platforms like Reddit’s r/wallstreetbets, Stocktwits, and X (formerly Twitter). 

Mentions of Krispy Kreme on Stocktwits rose more than 2,000% in 24 hours on July 22, while GoPro topped brokerage dashboards as a trending ticker. 

According to S3 Partners, Krispy Kreme’s short interest stands above 32%, making it one of the most shorted consumer stocks in the U.S. 

GoPro, though less aggressively shorted, attracted attention due to its bearish positioning and lower liquidity, triggering algorithmic buys once its stock gained momentum. 

This speculative frenzy has lifted other stocks with similar profiles. Shares of Beyond Meat, 1-800-Flowers, and Kohl’s have all recorded moderate to double-digit increases over the past three days, again without major operational developments. 

In a broader context, investor risk appetite may also be on the rise. The S&P 500 recently hit a new high, cryptocurrency markets have rebounded in Q2, and signs of cooling inflation have raised hopes of Federal Reserve rate cuts by year’s end. 

Yet despite this macro optimism, both Krispy Kreme and GoPro continue to face business challenges. Krispy Kreme’s latest quarterly earnings showed flat revenue growth, missed Wall Street expectations, and included a dividend suspension. GoPro still struggles with profitability and product differentiation in a market increasingly dominated by smartphones and newer action camera competitors.

Analysts warn that meme-driven surges often prove short-lived without improvements in core performance.. Previous episodes involving GameStop, AMC, and Bed Bath & Beyond serve as cautionary tales: massive gains can quickly reverse once social media hype dies down. 

So far, neither Krispy Kreme nor GoPro has announced any new initiatives, product innovations, or strategy shifts that might justify a sustained revaluation.

For now, this week’s rally appears more reflective of retail investor sentiment than underlying company value; yet another reminder that prices can move independently of fundamentals in modern markets.