The meme-stock phenomenon appears to be continuing, with several companies experiencing significant gains in early trading. GoPro, Krispy Kreme, and Beyond Meat all surged before slightly reducing their gains. Other recent day-trader favourites, however, trended lower. These fluctuations highlight the volatile nature of meme-stock trading.
Wearable camera maker GoPro experienced a substantial surge, climbing as high as 73 per cent before settling to a 22 per cent increase. Krispy Kreme, the doughnut company, saw a rise of 5.9 per cent, while Beyond Meat, the plant-based meat producer, jumped 6.4 per cent. Conversely, Opendoor Technologies declined by 23 per cent, and Kohl’s Corp. fell 16 per cent.
According to Daniela Hathorn, senior market analyst at Capital.com, the dramatic increases in trading volumes and stock prices stem from social media attention, short squeezes, and technical breakouts. Hathorn noted, “Krispy Kreme seems to be the latest addition to the frenzy,” and emphasized that “there was no significant news to justify the rally, just sheer retail momentum.”
Call volume on Krispy Kreme surged on Tuesday, reaching a record of over 100,000 contracts traded, which is 71 times the average daily volume over the past four years. GoPro also experienced high call volume, reaching over 56,000 contracts, marking its highest level since 2021. Krispy Kreme is a global retailer of doughnuts and other treats, while GoPro produces wearable action cameras and related accessories.
