GoPro and Krispy Kreme Dive Into the Meme Craze Amid Rising Wall Street Buzz

Traders have been buzzing lately, finding new stocks to rally behind. Recently, retail traders on Reddit have set their sights on wearable camera company GoPro and doughnut maker Krispy Kreme. This excitement saw GoPro’s stock jump 56% and Krispy Kreme’s rise by 18% in just one morning. In contrast, shares of OpenDoor, another favorite, fell by 17%.

GoPro and Krispy Kreme are both considered penny stocks. GoPro has been trading under a dollar for most of this year, while Krispy Kreme hovers around $4 per share. Interestingly, about 28% of Krispy Kreme’s shares are sold short, compared to 10% for GoPro, which means many investors are betting against these stocks.

This kind of trading activity isn’t new. It echoes trends we saw during the GameStop phenomenon in 2021, where social media-driven trading caused wild stock price swings. A recent post on WallStreetBets even proclaimed “YOLO DNUT,” a nod to traders taking big risks.

On a broader scale, the recent market activities align with a rally that has pushed the S&P 500 to record highs, reflecting a 7% gain this year. Analysts at Wolfe Research attribute this surge to easing GDP concerns due to new economic policies, anticipated Federal Reserve rate cuts, and generally encouraging economic data.

In a world where social media significantly impacts investing, keep an eye on these trends. The way retail traders capitalize on market sentiments can reshape how we think about stock trading.

For more details on GoPro and Krispy Kreme’s stock performance, check CNBC for up-to-date charts and analysis.

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