Meme Mania Resurges: The Explosive Return of Retail Trading in 2025

Meme stocks have roared back in the summer of 2025, with a fresh wave of retail trading activity focusing on a handful of companies that blend high short interest, pop-culture buzz, and explosive moves fueled by social media. Kohl’s has emerged as one of the brightest stars this week, driven by a staggering 41% short interest. The stock surged 39% in a single session, lifted by coordinated buying on Reddit’s r/WallStreetBets and Stocktwits, with option volumes spiking and message boards lighting up in response to every price tick.

Another major name hitting the meme stock radar is Krispy Kreme, which notched a jaw-dropping 26% intraday gain followed by nearly 25% more after hours. Over 32% of Krispy Kreme’s float was sold short, molding perfect conditions for a short squeeze. Stocktwits chatter surged, and memes referencing donuts and “glazed” shorts trended across platforms, amplifying retail excitement.

American Eagle Outfitters is being named across forums as a possible next meme stock after an ad campaign starring Sydney Sweeney went viral, generating significant buzz and pushing the stock up about 10% on the news. About 13% of American Eagle’s shares are currently sold short, and social sentiment is running high with call options volume ticking up. The Sydney Sweeney campaign itself has become a meme, blending celebrity hype with meme culture in a way tailor-made for forum-driven trading.

Beyond the high-flyers of the week, other stocks capturing attention include GoPro, Opendoor Technologies, and 1-800-Flowers. GoPro rode a wave of posts and coordinated option buys, though its momentum faded quickly after an initial push. Opendoor saw a parabolic run, more than tripling in a matter of days before giving back part of its gains, underscoring the volatility and fleeting nature of these rallies.

Legacy meme stocks like AMC and GameStop remain ever-present in the conversation. Though they haven’t matched the magnitude of recent newcomers, both saw increased options flow and bursts of price action tied to social media rumors and coordinated trading attempts. Their large followings on Reddit continue to monitor for technical breakouts or opportunities for new short squeezes.

Notably, the current meme stock rally differs from past episodes by its data-driven approach. Traders are scouring short interest ratios, options flow, and volume spikes before coordinating mass moves. Some platforms even use AI-driven sentiment trackers to spot early chatter. This strategic layer has led to sharper, but often shorter, price runs.

Despite the speculative euphoria, cautionary voices are growing louder. Market analysts and brokers continue to stress that these stocks often rally without any change in business fundamentals. The movement relies on a cycle of fresh retail money, and thin liquidity can swiftly flip gains into sharp drops, as seen with Opendoor and GoPro’s quick reversals. Regulatory interest has yet to pick up in earnest, but some market watchdogs have warned traders not to confuse memes with value and to watch for signs of coordinated manipulation, especially as short squeezes can lead to whiplash volatility.

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This content was created in partnership and with the help of Artificial Intelligence AI