Meme Stock Euphoria Spreads as Retail Traders Pick New Wagers
Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US
Why the Federal Reserve's Building Renovation Costs $2.5 Billion
Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom
The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction
Milan Corruption Probe Casts Shadow Over Property Boom
Chatter across social media platforms first fixed on Opendoor Technologies Inc. but has since expanded to other heavily discounted names like Kohl's Corp., GoPro Inc. and Krispy Kreme Inc., sending them all flying to eye-popping rallies.
For amateur traders making these dicey bets, it's less about company fundamentals and more about the online personalities endorsing them, according to Max Gokhman, deputy chief investment officer at Franklin Templeton Investment Solutions.
'A lot of times with meme stocks in general, what the business does is much less important than who's backing the stock,' he said. 'Finfluencers are commanding these followings. You may have this one person posting on TikTok about a stock they like and then there's 100,000 or more investors who are putting money behind it.'
According to Citadel Securities, retail traders were net buyers of cash equities for the past 19 straight trading sessions, the longest streak since the frenzied days of the 2021 meme stock craze. The 10-day average of retail participation in non-profitable technology companies reached 23% — the highest level since a Goldman Sachs trading desk began tracking it — and rose to 25% this week.
Many of the stocks have come into focus because they have high levels of short interest, indicating that more sophisticated investors have been betting against them. Retail traders are hoping to take advantage of a short squeeze in which short sellers are forced to get out of their trades by buying back the shares, sending the stock higher.
'It's almost like a broad rotation where the winners are getting sold for the losers and those losers are getting squeezed,' said Jack Janasiewicz, portfolio manager at Natixis Investment Managers Solutions.
Opendoor
Until very recently, shares of digital real estate firm Opendoor Technologies were trading under $1, putting it at risk of being delisted. A series of posts praising the stock from Eric Jackson, founder of Toronto-based hedge fund EMJ Capital, caused it to jump 312% in just six days through Monday. Shares of Opendoor are now extending their retreat for a second day following the massive six-day run up. More than 360 million shares exchanged hands on Wednesday morning, roughly 240% of the average over the last three months.
Kohl's
Of the latest meme stock breakouts, shares of the beleaguered retailer Kohl's have the highest short interest. Some 48% of the free float of the $1.3 billion stock have been borrowed for the purpose of shorting the company, according to data compiled by S3 Partners. That has led to some talk on message boards about the stock rising as a result of a short squeeze. Kohl's shares tumbled as much as 18% on Wednesday after surging 38% higher at market close on Tuesday. The company was in the spotlight a few months ago following the firing of its recently appointed chief executive officer, Ashley Buchanan, due to allegations that he directed business to a romantic partner.
GoPro
Wearable camera maker GoPro has soared more than 75% this week, including a 73% jump at Wednesday's open — more than any previous day on record. The company, which has a market capitalization of about $247 million, has drawn retail interest on social media platforms in part because of its elevated short interest of nearly 10% of the float, according to data compiled by Bloomberg. This year, the company has been embroiled in a patent-infringement dispute with rival Insta360.
Krispy Kreme
Doughnut maker Krispy Kreme shot up over 35% on Wednesday morning before falling back, bringing its weekly gain to 44%, more than in any previous week. The volume of call options on the stock reached a record level Tuesday, with more than 1 million contracts trading, as investors loaded up on bullish wagers to chase the rally. Before the recent retail-driven surge, the shares had been under pressure after the company halted quarterly cash dividends and ended a partnership with McDonald's Corp. on cost issues. About 30% of its outstanding shares are sold short, according to data compiled by Bloomberg.
As the number of stocks attracting retail traders is growing, Joe Gilbert, portfolio manager at Integrity Asset Management, cautioned of warning signs ahead.
'Most of the excitement from retail traders has been because of the success of buying the dip after Liberation Day,' he said. 'Their confidence is unwavering now and that is the perfect setup for a correction.'
--With assistance from Natalia Kniazhevich.
Elon Musk's Empire Is Creaking Under the Strain of Elon Musk
Burning Man Is Burning Through Cash
A Rebel Army Is Building a Rare-Earth Empire on China's Border
What the Tough Job Market for New College Grads Says About the Economy
How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All
©2025 Bloomberg L.P.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 minutes ago
- Yahoo
US stock futures higher after Trump strikes trade deal with EU
U.S. stock futures are higher after President Donald Trump struck a trade deal with the European Union ahead of an Aug 1 deadline. The deal includes a 15% tariff on most European goods entering the U.S., similar to agreements struck recently between Trump and other major trading partners, including Japan. The levy is higher than the 10% rate sought by Europeans but less than the 30% Trump threatened earlier in July. Pharmaceuticals, steel and aluminum aren't included in the tariff deal. Additionally, the EU will invest $600 billion in the U.S. and buy $750 billion worth of U.S. energy, Trump said. "More adverse scenarios seem to have been avoided, for now, and this is excellent news but whether everything will now be 'big and huge' still remains to be seen," said Carsten Brzeski, global head of macro for Dutch bank ING. At 6 a.m. ET, futures tied to the blue-chip Dow rose 0.17%, while broad S&P 500 futures added 0.26% and Nasdaq futures rose 0.45%. Separately, the U.S. and China are expected to extend their tariff truce by another three months, the South China Morning Post reported. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng plan to have talks in Stockholm. Busy week ahead With a trade deal with the U.S.' largest trading partner easing tariff fears, investors will turn to earnings and the Federal Reserve's policy meeting for more direction. More so-called Magnificient Seven influential megacap technolgy companies are due to report quarterly results. They include Facebook parent Meta, Microsoft. Amazon and Apple. With about 30% of S&P 500 companies having reported results, overall quarterly earnings are on track for a 7.7% increase from a year ago, according to LSEG IBES. That's higher than the July 1 forecast for a 5.8% increase. Meanwhile, virtually no one expects the Fed to lower rates this week but investors will look for clues on when it might. The Fed has said with the economy showing resiliency, it would wait to see how Trump's tariffs play out before moving rates. At the end of the week, after the Fed's meeting, investors will see more inflation data and the key monthly jobs report to see if the labor market continues to hold up despite the Trump's back-and-forth tariff barbs over the past few months. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: US stock futures higher after Trump EU trade deal Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
2 minutes ago
- Yahoo
Europe reacts with mix of relief and concern to US trade deal
By Philip Blenkinsop and Sudip Kar-Gupta BRUSSELS (Reuters) -European governments and companies reacted with both relief and concern on Monday to the framework trade deal struck with U.S. President Donald Trump, acknowledging what was seen as an unbalanced deal but one that avoided a deeper trade war. The agreement, announced on Sunday between two economies that account for almost a third of global trade, will see the U.S. impose a 15% import tariff on most EU goods - half the threatened rate but much more than what Europeans hoped for. Many of the specifics of the deal were not immediately known, however. "As we await full details of the new EU–U.S. trade agreement, one thing is clear: this is a moment of relief but not of celebration," Belgian Prime Minister Bart De Wever wrote on X. "Tariffs will increase in several areas and some key questions remain unresolved." Trump said the deal, including an investment pledge topping the $550 billion deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of U.S. exporters. It will bring clarity for European makers of cars, planes and chemicals. But the EU had initially hoped for a zero-for-zero tariff deal. And the 15% baseline tariff, while an improvement on the threatened rate of 30%, compares to an average U.S. import tariff rate of around 2.5% last year before Trump's return to the White House. European Commission chief Von der Leyen, describing Trump as a tough negotiator, told reporters on Sunday that it was "the best we could get". European stocks opened up on Monday, with the STOXX 600 at a four-month high and all other major bourses also in the green. Tech and healthcare stocks led the way. "The 15% rate is better than the market was fearing," said Jefferies economist Mohit Kumar. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector hard. MORE CLARITY, BUT 'NOT THE END OF THE STORY' French government ministers said on Monday that the deal had some merits - such as exemptions they hoped to see for some key French business sectors such as spirits - but was nevertheless not balanced. Industry minister Marc Ferracci stressed more talks - potentially lasting weeks or months - would be needed before the deal could be formally concluded. "This is not the end of the story," he told RTL radio. European companies, meanwhile, were left wondering whether to cheer or lament the accord. "Those who expect a hurricane are grateful for a storm," said Wolfgang Große Entrup, head of the German Chemical Industry Association VCI. "Further escalation has been avoided. Nevertheless, the price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs," he said. Stellantis shares were up 3.5% and car parts maker Valeo jumped 4.7% while German pharma group Merck KGaA rose 2.9%, in a sign of relief for those sectors. Among the many questions that remain to be answered, however, is how the EU's promise to invest hundreds of billions of dollars in the U.S. and steeply increase energy purchases can be turned into reality. It was not immediately clear if specific pledges of increased investments were made or whether the details still must be hammered out. And while the EU pledged to make $750 billion in strategic purchases over the next three years, including oil, liquefied natural gas (LNG) and nuclear fuel, the U.S. will struggle to produce enough to meet that demand. While U.S. LNG production capacity is due to almost double over the next four years it will still not be enough to ramp up supplies to Europe, and oil production is expected to be lower than previously forecast this year. Despite the lingering unknowns, analysts stressed the deal still helped decrease uncertainty. Oil prices rose on Monday, as did the euro. "Now that there is more clarity, you would think that not only in the United States, but around the globe, there will be a little bit more willingness to look at investment, to look at expansions, and to look at where the opportunities are," said Rodrigo Catril, senior currency strategist at National Australia Bank. Sign in to access your portfolio
New York Post
3 minutes ago
- New York Post
Left-wing hedge fund D.E. Shaw fears ‘reprisals' over DEI from Trump administration: sources
Staffers at the notoriously secretive hedge fund D.E. Shaw fear the wildly lucrative left-wing firm could face 'reprisals' from the Trump administration over its woke DEI policies, The Post has learned. The New York-based powerhouse founded by billionaire David E. Shaw — whose algorithm-driven trades made it the most profitable hedge fund in 2024, raking in $11.1 billion for investors, according to Institutional Investor magazine — has grown remarkably quiet of late when it comes to diversity, equality, and inclusion, sources said. D.E. Shaw did not respond to The Post's emailed request for comment for this article. 8 Billionaire David E. Shaw, who has a long history of donating to Democrats, founded the money-spinning firm in 1988. YouTube/WebsEdge Science The company, which gave a young Jeff Bezos his big break in finance before he set up Amazon in 1994, has promoted DEI policies for years. A June 2019 memo obtained by The Post that was written by managing director Eddie Fishman encouraged staffers 'to display their pronouns' that 'align with their gender identity' in their emails so managers could 'foster an inclusive culture.' 8 The June 2019 memo. Obtained by the NY Post But a review by The Post of archived pages from D.E. Shaw's website shows that its DEI language has since been scrubbed, including references to how the firm 'actively promotes LGBTQ+ inclusion.' Now, its site merely says it's seeking 'talented people with diverse perspectives and backgrounds.' One insider said top brass at the Wall Street firm — whose 74-year-old namesake helped bankroll the presidential campaigns of Kamala Harris, Joe Biden, Barack Obama and Hillary Clinton — made 'a strategic move' to steer away from full-throated wokeness over fear of catching the attention of the White House. 'There was some concern that aggressive policies would make the firm a target for reprisals by the current administration,' the source said. 'And we were about as aggressive as you could get.' 'They were going 100 miles an hour on DEI in public, only then to drop to zero and fall off a cliff,' said another staffer. 'The communications have certainly been ratcheted back,' claimed a third employee. 'It's not as in-your-face as it once was.' 8 Amazon founder Jeff Bezos met his ex-wife Mackenzie Scott while working at D.E. Shaw. The then-couple quit in 1994 when Bezos set up the online retail giant. REUTERS 8 Top DOJ lawyer Harmeet K. Dhillon issued a stern warning to corporate America in a Senate hearing on July 23: 'The goal is clear: either DEI will end on its own, or we will kill it.' CQ-Roll Call, Inc via Getty Images D.E. Shaw's retreat follows a Supreme Court ruling last month and a White House-led crackdown on corporate DEI policies, which critics say lower performance standards and foster so-called reverse discrimination. Top Department of Justice lawyer Harmeet K. Dhillon, the assistant attorney general for civil rights, issued the starkest of warnings to corporate America during a testimony to the Senate Judiciary Committee on July 23. 'The goal is clear: either DEI will end on its own, or we will kill it,' the top Trump administration official said. Nevertheless, five sources with direct knowledge of the matter told The Post that executives at the company — founded by computer scientist Shaw in 1988 after he did stints at Stanford, Columbia and Morgan Stanley — are still paying lip service to wokeness to the rank and file. 'They have said internally that our commitment and programs regarding DEI are not changing,' said another senior D.E. Shaw source, who spoke on condition of anonymity. 'They have themselves in a bit of a bind. They went hardcore DEI to appear progressive and cater to liberal recruits,' a veteran of the firm added. 'Internally, they are putting a brave face on it. But they are now very worried that the administration will start looking into them.' 8 President Trump has ordered the DOJ to crack down on the DEI policies that flourished under the Biden-Harris administration. Bloomberg via Getty Images 8 The woke job placements mysteriously disappeared from the DE Shaw website after The Post approached the firm for comment about its DEI policies. Fearing Trump's ire, the hedge fund appears to have axed its 'inclusive' Bridge internship. The program was set up in 2016 for 'historically underrepresented' groups in finance. The 'woke' job placement schemes still featured prominently on D.E. Shaw's website last week. But they have now been deleted after The Post approached the firm for comment on their DEI policies on Friday. According to an archived version of D.E. Shaw's Campus website — an online recruitment portal — the firm created three programs aimed at diverse recruitment. Its 'Discovery' program was 'designed for students who self-identify as women', while 'Momentum' was aimed at those 'who self-identify as part of the LGBTQIA+ community D.E. Shaw also had a program called 'Latitude,' which was 'for students who self-identify as Native American or Alaska Native, Black or African American, Hispanic or Latino, or Native Hawaiian or Other Pacific Islander.' 8 One scheme called Momentum was open to students who self-identify as part of the 'LGBTQIA+ community.' Other Wall Street giants including Goldman Sachs, BlackRock, Bank of America and Jamie Dimon's JPMorgan Chase have scaled back their public commitments to DEI. The Post reported exclusively how Goldman decided to give woke the boot — on its website at least — when its partners met with CEO David Solomon in Miami in February. The Post attempted to speak to additional employees at D.E. Shaw, but they declined, citing fears of retribution from D.E. Shaw's management, which has even been known to weigh in on whether employees can attend social gatherings with people who have left the company. 'It is definitely something that people are talking about at the firm,' a separate person briefed on the matter told The Post. 'The irony is that the whole firm is still very white and very male,' said another source. 8 Former Treasury Secretary Larry Summers is one of the biggest names among the DE Shaw alumni. He served both the second Clinton and first Obama administrations. Getty Images The hedge fund's leadership team counts two females, Alexis Halaby and managing director Anne Dinning, amongst its ranks. The firm last made major headlines in 2022 when it was forced to pay a $52 million defamation settlement to one of its former rising stars, Dan Michalow, after an arbitration panel found that it had falsely accused him of sexual misconduct. Michalow, who always denied any wrongdoing, left the company not long after the start of the #MeToo movement, where hundreds of rich and powerful men were accused of sexual misdeeds. Aside from Amazon's Bezos and his ex-wife, Mackenzie Scott, D.E. Shaw's most famous alum is arguably Lawrence Summers. He served as treasury secretary under Bill Clinton and as director of Barack Obama's National Economic Council.
