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Are Meme Stocks Making a Comeback? From Krispy Kreme to GoPro

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Shares of struggling retailers and well-known consumer brands have surged as amateur traders cast aside Wall Street doubt and mobilized online. It resembles the events of 2021.

However, this new memestock rally may eclipse those from four years ago, when investors flocked to familiar but overlooked stocks like video game retailer GameStop and cinema chain AMC.

Retailers Coles, camera company GoPro, fast food chain Wendy’s, and donut chain Krispy Kreme this week accelerated the rise of well-known volatile stocks, fueled by social media chatter reminiscent of the 2021 meme stock frenzy.

Actress Sidney Sweeney sparked excitement around clothing retailer American Eagle Outfitters after announcing her involvement in the brand’s new marketing campaign. Consequently, the company’s shares surged approximately 10% during Thursday’s trading.

Meme stocks “are poised to expand in size and scope, reconfiguring what’s deemed important in retail,” as per Jaime Rogozinski, founder of The WallstreetBets Reddit forums responsible for numerous volatile gatherings.

“The finance landscape is undeniably evolving with blockchain and AI trading autonomously,” he noted. “And retail groups are adapting alongside these changes.”

Rogozinski launched WallstreetBets in 2012 but was removed as a moderator by Reddit in 2020.

Forum participants actively share their research and insights. “It represents a decentralization of financial analysis power,” stated Noor Al, a moderator at WallstreetBets. “Great ideas can originate from anyone, anywhere.

“We observe the substantial influence of collective financial power, driven by ideas and community,” he added.

The 2021 memestock trend produced influencers like the memeable Kitty, emerging from a time when many amateur traders were confined at home and buoyed by pandemic relief funds.

It’s uncertain if this latest wave will yield similar successes. This week, Kohl’s shares soared by 32%, GoPro jumped 66%, and Krispy Kreme rose by 41%. These spikes illustrate that some investors are increasingly willing to embrace risk, especially with record stock highs making it hard for tech-heavy markets to outpace.

Investing in memestocks is often seen as an emotional or ideological choice, rather than grounded in economic fundamentals. Donald Trump’s Trump Media & Technology Group, which owns Truth Social, is currently valued at over $5 billion, generating roughly $1 million in quarterly revenue.

The spirit of Wallstreet Bets “has long embraced a mix of irony and relevance to the stock market,” Rogozinski mentioned, referencing fast food chain Wendy’s. “Wendy’s has maintained its meme status for the past decade. It always brings a sense of amusement because, on Reddit, you often see something like, ‘Sir, this is Wendy’s.’

“It’s an inside joke with roots I’m unsure of. It’s simply a meme,” he added. The fleeting spike in stocks—like a 10% increase over two days—illustrates that some retail investors may not prioritize typical market drivers, such as inflation and geopolitical conflicts. “It showcases our tendency to mock the financial system.”

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Ultimately, long-term institutional players often secure the last laugh, Rogozinski acknowledged. “Yet in the short term, there’s ample opportunity in this volatility. The rapid fluctuations of stocks highlight a crucial need for relevance within the financial system.”


The present market landscape doesn’t entirely mirror the low-interest rates and retail investors’ optimism from the COVID-19 era, but current market records and a strong economy are once again making meme stocks appealing. “We’re witnessing signs that this is a robust meme revival,” stated Brent Kochuba, founder of derivative-data company Spotgamma. He informed Bloomberg.

“The macroeconomic environment is particularly favorable for retail and speculative investments,” Al concurred. “We observed increased speculation and enthusiasm, with retail players responding quicker and offering insights.”

Logoszynski noted that traders aren’t necessarily focused on a company’s financial health. “This activist said, ‘I don’t care about the financials, the discounted cash flow. I like food, I like video games. I like memes.’

Currently, there’s an added “third factor” influencing investments, exceeding traditional supply and demand. “It doesn’t matter if it goes up or down or what assets or liabilities it possesses; I’m drawn to this company.”

Source: www.theguardian.com

Tech Stocks Climb Following Strong Nvidia Results, Despite Concerns Over Chinese Competitors

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Even though leaders in the AI chip industry have raised concerns about the emergence of Chinese competitors, tech stocks experienced an upswing on Thursday, buoyed by robust results from Nvidia.

The Stoxx Europe Tech Index increased by 0.8% on Thursday, leading to a 2.4% rise in Dutch semiconductor equipment manufacturer ASML. Meanwhile, in the US, tech-focused NASDAQ futures surged by 2%, alongside a 6% pre-market gain for Nvidia’s shares.

The uptick in tech and artificial intelligence stocks followed Nvidia’s report that surpassed Wall Street expectations, with quarterly revenues jumping 69% to $44 billion (£32.6 billion). The company also expressed optimism that business transactions in the Middle East could offset losses from China.

In April, former US President Donald Trump announced restrictions on AI chip exports to China, effectively cutting off a significant revenue stream, although Nvidia continues to sell H20 AI chips to Chinese firms.

Nvidia’s CEO Jensen Huang cautioned that Chinese competitors are capitalizing on the vacuum left by US trade barriers. “Chinese rivals have adapted,” Huang stated to Bloomberg TV. He noted that Huawei, which has been blacklisted by the US government, is “extremely formidable.” “Like everyone, their capabilities are multiplying each year,” Huang remarked. “The volume has also significantly increased.”

While US government policies aim to shield AI technology from Chinese influences, Huang indicated that domestic businesses are simply exploring alternative options. “The importance of the Chinese market should not be underestimated,” Huang noted. “It’s home to the largest population of AI researchers globally.”

Nvidia mentioned that it anticipates losing out on $8 billion in revenue for the second quarter due to Trump’s trade restrictions.

Tech investors felt positive after a recent judicial ruling that might challenge the president’s aggressive trade regime, as the US trade court opposed Trump’s severe tariff policies. Nonetheless, uncertainty looms since the White House has already appealed this decision from the International Trade Court based in New York.

In other news, shares of Tesla, another key player in AI technology, climbed by 2.6% after CEO Elon Musk confirmed his decision to step down from his role in the Trump administration.

Musk has been “at the helm of the Department of Government Efficiency (DOGE) since January, ruthlessly cutting expenditures across various public sectors and institutions. He announced in April his intention to resign following a decline in Tesla’s revenue and his failure to secure a Supreme Court position, which had consumed millions in support of Republican candidates.

Source: www.theguardian.com

Reddit’s stocks soar on their first day of public trading

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The social media platform Reddit’s stocks, traded under the symbol RDDT.N, closed the first day of trading in New York with a 48% increase. This suggests that there is renewed investor interest in initial public offerings (IPOs) of promising yet money-losing companies.

Reddit’s shares closed at a value 48% higher than their initial offering price on the first day of trading, valuing the company at over $9 billion. The stock rose to $57.80 per share, a 70% increase, before settling at $50.44 per share by the day’s end.

The IPO price for the San Francisco-based company was $34 per share, giving it a market value of $6.4 billion. The company and its selling shareholders raised $748 million.

Reddit’s highly anticipated IPO had been in the works for over two years. An IPO filing was made secretly in December 2021 but was delayed due to market volatility. The current valuation marks a decrease from 2021 when it was valued at $10 billion in a private funding round.

Reddit’s strong market entry could yield significant gains for its largest shareholder, Advance Publications. The parent company of Condé Nast, which owns magazines like The New Yorker and Vogue, stands to profit up to $1.4 billion from the IPO. Advance purchased Reddit for $10 million just 18 months after its launch.

Reddit’s co-founder and CEO, Steve Huffman, received a compensation package totaling $193 million last year. While the site’s other co-founder, Alexis Ohanian, has been a public figure, he does not appear in the company’s filings with U.S. financial regulators.

Major shareholders of Reddit include Chinese gaming company Tencent with an 11% stake, Fidelity with 9.5%, and OpenAI CEO Sam Altman with 8.7%. Reddit was part of the first batch of startups from Y Combinator, where Mr. Altman later served as president.

Reddit’s IPO amid a tech frenzy is expected to give the company a strong market position. However, Julian Klimochko, CEO of Accelerate Financial Technologies, suggests that market performance in the coming weeks will be closely monitored.

“A poor trade by Reddit could impact the IPO market, leading many companies to pause their IPO efforts,” Klimochko stated.

Since its founding in 2005, Reddit has become a cornerstone of social media culture, known for its alien logo on an orange background and its tagline “Front Page of the Internet.”

Reddit hosts over 100,000 online forums called “subreddits” covering a wide range of topics. The platform has been used for various activities, including support groups and interviews, such as the one conducted with Barack Obama in 2012.

Despite its cult status, Reddit has not matched the success of larger rivals like Facebook and Tesla. The company has about 73 million daily unique visitors compared to Facebook’s 2 billion daily logins.

Reddit allocated 8% of its IPO shares to eligible users, moderators, board members, and acquaintances of employees and directors as part of its user appreciation plan. The company is in early stages of monetization and has yet to turn a yearly profit, raising questions about its path to profitability.

“The true test will be after the first earnings report. The results and strategic changes made post-IPO will be crucial,” said Leena Agarwal, director of Georgetown University’s Psaros Center for Financial Markets.

Source: www.theguardian.com

Snap stock’s growth takes a hit amidst growing concerns | Technology

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Snapchat’s owner narrowly missed Wall Street’s hopes as it continues to grapple with slowing digital advertising. The social media company’s stock price fell by nearly a third.

Snap said it was “encouraged by our progress,” but cited factors such as the Middle East conflict that had hurt its business.


Snap’s revenue rose 5% to $1.36 billion in the three months ended Dec. 31, missing analysts’ expectations for $1.38 billion. Net loss narrowed from $288 million to $248 million.

Investors remained concerned about the company’s growth. The company expects revenue for the current quarter to be between $1.1 billion and $1.14 billion. Analysts had expected about $1.1 billion.

Snap shares fell 30% to $12.21 in after-hours trading in New York.

Alphabet, owner of Google and YouTube, the world’s two biggest advertisers, and Meta Platforms, owner of Facebook and Instagram, are in a better position. Smaller companies in the market continue to struggle.

Santa Monica, Calif.-based Snap expects to end 2023 with about 414 million daily active users, a number that will rise to 420 million in the first quarter.

The group told investors on Tuesday that it was “shifting our focus to user growth and deepening our engagement in our most profitable regions, including North America and Europe.”

Evan Spiegel, CEO of Snap, said: “2023 was a pivotal year for Snap. We transformed our advertising business and continued to grow our global community, reaching 414 million daily active users.” We have 7 million subscribers who pay for our products.

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“Snapchat strengthens our relationships with friends, family and the world, and this unique value proposition has provided a strong foundation on which to build our business for long-term growth.”

The company releases its financial results a day after announcing it would lay off about 10% of its global workforce, or about 530 people, as part of an organizational restructuring to “reduce hierarchy and increase in-person collaboration.” did. Last week, the company recalled its Pixy selfie drone due to the risk of fire due to battery overheating.

Source: www.theguardian.com