Krispy Kreme Joins Meme Stocks Revival

Krispy Kreme is the latest company to ride the renewed meme-stock wave, surging as much as 25%.

Some analysts attribute the recent trends to momentum chasing, while others suspect coordinated efforts to target heavily shorted stocks. I Photo: Krispy Kreme X

The resurgence may reflect both a backlash against bearish investors and the increasing influence of passive investing strategies that have drained liquidity and fueled volatility, Barron’s Daily reporters Martin Baccardax and Elsa Ohlen wrote.

Recent wild swings in stock prices have sparked debate on Wall Street: Is this meme-stock revival a sign of investor complacency or simply the next phase of the “gamification” of investing, driven by the rapid rise of online platforms enabling impulsive retail trading?

Opendoor Technologies appears to have kicked off the new wave, soaring more than 188% last week. Other stocks followed with large intraday gains, including Beyond Meat and gadget maker GoPro.

According to Apollo Global Management, passive investing now accounts for over 50% of global equity mutual funds and ETFs, up from just 25% in 2012.

Analysts disagree on what’s fueling the current surge—some point to momentum chasing, while others suspect coordinated efforts to target heavily shorted stocks. Despite differing views, one point of consensus stands out: investors should tread carefully.