Krispy Kreme
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Popular doughnut chain Krispy Kreme, alongside GoPro, are recent companies which have emerged as the latest darlings of Reddit's r/WallStreetBets community.

The move, inspired by the GameStop stock surge driven by Redditors in 2021, is a continuing trend among traders who are part of the r/wallstreetbets subreddit to conduct short squeezes on 'meme stocks'.

A Surprising Stock Surge

Krispy Kreme's stock has surged roughly 27–35% over the past two sessions, driven almost entirely by meme‑stock momentum rather than any changes in its fundamentals.

The shares hit a high of $4.13 (£3.05), marking their most substantial intraday jump in over a year, as retail trader chatter, short‑squeeze speculation, and social media buzz combined to fuel the rally. This explosive move comes despite the company reporting a decline in Q1 revenue and suspending its dividend.

Meanwhile, GoPro's stock has also been swept up in the meme stock wave, climbing roughly 40–50% over the last two days. With today's share price hovering around $1.64 (£1.21), momentum appears to be the key driver rather than any significant earnings or product announcements.

The Craze Inside r/WallStreetBets

Trading in favour of Krispy Kreme has been a hot topic in the popular subreddit, with a particular user noting that they converted $250 (£184.37) to $5,700 (£4,203.58) given that the volume during trading hours was on the rise, and that the 'gamble' was worth it.

Another Reddit user created a detailed explanation on the short squeeze, rooted in 'the stock symbols being meme-able'. In their post, he mentions the phrase 'OPEN your a-hole and KSS DNUTz', which also includes the stock tickers for Opendoor Technologies — a residential real estate company —and Kohl's — a popular department store retail chain.

While there have been no recent discussions related to short-squeezing GoPro, it is worth noting that the company, well-known for its action cameras, is part of an existing 'meme stock portfolio' among online Redditors, which also includes companies such as Faraday Future, Children's Place, and Tilray.

Reality of Their Financials

Despite these sudden stock surges, both of these companies have faced financial and operational challenges lately. Krispy Kreme reported Q1 2025 EPS of –$0.05 (~£0.037), missing estimates by $0.01 (£0.0074), as revenue slid 15 % YoY to $375.2 million (£276.70 million)—below forecasts of ~$384 million (~£283.19 million).

Meanwhile, GoPro is awaiting Q2 2025 earnings scheduled for August 5. In Q1, retail revenue fell ~17 % YoY to $137 million (£101.03 million), and total revenues declined, with continuing negative EPS. For Q2, the company projects approximately $145 million (£106.93 million) in revenue and a non-GAAP loss per share of around $0.07 (£0.052) – reflecting a prolonged downtrend in sales and ongoing unprofitability.

'Short Squeeze' History Repeats Itself

Short-squeezing stocks–at least promoted by online traders–have been around since January 2021. Back then, Reddit users—most notably on r/WallStreetBets—have orchestrated historic short squeezes that upended Wall Street. It began with GameStop, which leapt ~1,500% in two weeks, forcing hedge funds to scramble as over 140% of its float was shorted.

This then led to coordinated buying that extended to AMC and Bed Bath & Beyond, igniting similarly wild rallies.

Ultimately, this wave of social media-driven trades demonstrates how collective action can undermine institutional positions, intensify volatility, and attract regulatory scrutiny. While a few profited, many retail investors who joined late faced steep losses. The Reddit squeeze saga remains a cautionary tale of online enthusiasm versus fundamentals.

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