A new wave of Meme Stocks: Opendoor, Kohl’s and Krispy Kreme

The meme stock frenzy is back, this time with new players. Opendoor Technologies (OPEN), Kohl’s (KSS), and Krispy Kreme (DNUT)are at the forefront of this new wave of market mania.

All three stocks have seen massive surges in trading volumes and share prices, driven by a mix of social media buzz, short squeezes, and technical breakouts—despite little to no change in their underlying business fundamentals.

Opendoor Technologies has become the most striking case in this rally, with shares skyrocketing nearly 500% in just a month. The momentum accelerated after hedge-fund manager Eric Jackson posted a viral thread on X (formerly Twitter) predicting massive upside potential. With over 24% of the float shorted and heightened options activity, the setup was perfect for a classic short squeeze. Despite the absence of material news, speculative fervour and Reddit chatter sent the stock soaring.

Opendoor Technologies Inc (OPEN) daily chart

(Past performance is not a reliable indicator of future results)

Kohl’s also joined the party, with its stock doubling intraday at one point before settling around a still-elevated $14 level. Nearly 50% of its float is shorted, making it a prime target for short squeeze dynamics. Online forums like Reddit’s WallStreetBets and platforms like Stocktwits reported a significant increase in retail chatter - echoing the GameStop-style mania of 2021. The stock’s explosive rally shows just how quickly sentiment can reverse when the retail crowd mobilizes.

Kohl’s (KSS) daily chart

(Past performance is not a reliable indicator of future results)

Krispy Kreme seems to be the latest addition to the frenzy with its stock surging by over 25% in regular trading and another 25% in after-hours moves on Tuesday. Like the others, there was no significant news to justify the rally—just sheer retail momentum. The move underscores how meme stock dynamics remain alive and well, driven more by investor enthusiasm and positioning than corporate performance.

Krispy Kreme (DNUT) daily chart

(Past performance is not a reliable indicator of future results)

This resurgence of meme stock trading can be attributed to several factors. First, retail trading forums and social platforms have once again become engines of crowd momentum. Second, these stocks are all heavily shorted, setting the stage for violent short squeezes when buying pressure ramps up. Lastly, the current market environment—with tech stocks strong and crypto markets rebounding—has encouraged a risk-on mindset, emboldening retail traders to dive into speculative plays.

Yet the risks are just as stark as the rewards. These surges are often disconnected from company fundamentals and can reverse violently. Traders who chase momentum without an exit strategy may be caught in painful drawdowns. History shows that meme stock rallies are often brief and brutal—spectacular on the way up, and just as quick to unravel.

Still, for now, meme stock mania is back—and Opendoor, Kohl’s, and Krispy Kreme are the latest stars in the speculative spotlight. Whether this is the start of a sustained retail-driven rally or just another brief flare-up remains to be seen. Either way, it’s a powerful reminder that market psychology and crowd behavior can sometimes matter more than the numbers.