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.”

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.”