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CNBC
an hour ago
- Business
- CNBC
So far the meme rally is tame and that's good for the market
Bursts of speculative rallies in meme stocks have been largely held in check, making some believe the trading frenzy won't derail the overall market that's back at a record. Shares of Opendoor jumped about 7% in premarket trading Thursday after two days of retreat. The real estate startup gained sudden fandom among retail traders, pushing the stock up more than 300% this month. Other meme names that had been active were relatively tame. Wearable camera firm GoPro , doughnut maker Krispy Kreme and Kohl's all traded slightly lower Thursday. American Eagle Outfitters seems to be catching the meme wave , with shares skyrocketing 13% after the company unveiled a campaign with Sydney Sweeney. "The combination of the Momentum Unwind and Meme Mania 2.0 are reducing (eliminating?) people's ability to hold alpha shorts. Combine that with positive comments on M & A pipeline and the impending buyback bid and the storm clouds appear to be lifting ahead of the previously feared Aug 1 deadline," JPMorgan's trading desk said in a note to clients. "Now, if that US / EU hits the tape, we get a deal from China next week, and the macro data holds up and look for this market to take a significant step higher," it added. The heightened speculative activity on Wall Street coincided with a relief rally in the broader market amid better-than-feared tariff headlines. The S & P 500 closed at another record high Wednesday, bringing its 2025 gains to more than 8%. "At some point this steady stream of optimism likely will cause sentiment to jump to speculative levels which would warn of a selloff as nearly 80% of US companies have beaten 2Q earnings thus far and Meme stocks have been making a comeback," Mark Newton, head of technical strategy at Fundstrat, said in a note.
CNBC
an hour ago
- Business
- CNBC
Sydney Sweeney sparks latest meme stock rally as American Eagle soars 18%
Actress Sydney Sweeney helped bring American Eagle shares into the latest round of meme stock mania on Thursday. The "Euphoria" and "Anybody But You" star will headline a fall campaign for the retailer, American Eagle announced Wednesday. Shares of the company surged nearly 18% in Thursday premarket trading. Thursday's jump makes American Eagle poised to join the ranks of a new class of meme stocks that has emerged this week. American Eagle's high short interest and inherent brand recognition make it a prime candidate for meme-obsessed retail traders, who have been sending specific stocks on volatile rides in recent days. GoPro and Krispy Kreme came into the fold after the pair saw wild trading in Wednesday's session. Earlier in the week, meme traders had focused attention on Opendoor Technologies and Kohl's. More than 13% of American Eagle shares available for trading are sold short, according to FactSet data. The stock generated discussion among users on the Wall Street Bets Reddit page, a popular forum for retail investors, beginning Wednesday night. As investors betting against the stock move to cover their hefty short position, it can fuel some artificial buying in the shares. Sweeney's campaign will center on American Eagle's denim jeans, according to the company. That comes as retailers lean into the growing preference for the fabric amid a boom in popularity for Western styles. "With Sydney Sweeney front and center, she brings the allure," Jennifer Foyle, the company's president and executive creative director, said in a statement. "We add the flawless wardrobe for the winning combo of ease, attitude and a little mischief." Thursday's action can provide a reprieve for the battered stock, whose shares have tumbled around 35% so far in 2025 through Wednesday's close.
CNBC
2 hours ago
- Business
- CNBC
Stocks making the biggest moves premarket: Chipotle, Tesla, ServiceNow, Las Vegas Sands and more
Check out the companies making headlines in premarket trading. Meme stocks — These stocks once again are making attention-grabbing moves. Opendoor Technologies jumped 7%, while GoPro and Krispy Kreme each fell around 4%. Dow Inc. — The chemical company's stock slid more than 10% after disappointing second-quarter results. Dow posted a loss of 42 cents per share, excluding items, on $10.1 billion in revenue, while analysts penciled in a loss of 17 cents a share and $10.23 billion, respectively, according to LSEG. Alphabet — Shares of the Google parent rose almost 4% on a stronger-than-anticipated earnings report. Alphabet earned $2.31 per share on $96.43 billion in revenue for the second quarter, surpassing respective expectations of $2.18 a share and $94 billion from analysts, according to LSEG. ServiceNow — Shares surged nearly 8% after the software stock hiked its full-year guidance for subscription revenue after beating Wall Street expectations for the second quarter. Chipotle — Shares of the fast-casual burrito chain plunged 12%. The company cut its same-store sales forecast and posted weaker revenue for the second quarter than anticipated by analysts polled by LSEG. Tesla — The electric vehicle maker's stock fell 6% after missing expectations on both lines in the second quarter. Tesla earned an adjusted 40 cents per share on $22.5 billion in revenue, missing consensus estimates for 43 cents and $22.74 billion, per LSEG. Honeywell — Shares ticked 3% lower despite beating expectations for second-quarter earnings and offering upbeat guidance. Honeywell earned $2.75 per share, excluding items, on $10.35 billion in revenue, exceeding forecasts of $2.66 per share and $10.07 billion in revenue from analysts surveyed by LSEG. American Airlines – Shares of the air carrier fell 6%, despite its quarterly financial results beating on the top and bottom lines, after the company's third-quarter profit forecast fell short of expectations . For the third quarter, American said it expects an adjusted per-share loss of between 10 cents and 60 cents, while analysts polled by LSEG estimated a 7 cent loss. American Eagle Outfitters – The apparel retailer soared 18% after launching an ad campaign featuring actress Sydney Sweeney, fueling speculation that it could be the next name to join the resurgence of meme stocks. American Eagle is down almost 50% over the past year. The move comes amid a revival of meme stock activity that's hit Opendoor, GoPro and others. T-Mobile — Shares jumped 4% after the telecommunications company shared better second-quarter earnings than anticipated. T-Mobile posted earnings of $2.84 per share and $21.13 billion in revenue, beating the estimates of $2.67 per share and $21.02 billion from analysts, per LSEG. Las Vegas Sands — The casino operator's stock rallied 6% after second-quarter earnings results topped predictions. Las Vegas Sands reported adjusted earnings of 79 cents per share on $3.18 billion in revenue versus estimates of 53 cents per share and $2.83 billion in revenue from analysts surveyed by LSEG. IBM — The tech stock fell 6% in premarket trading after the company reported below-consensus revenue and gross margin in the software business. Still, IBM delivered stronger results than expected and raised its forecast for full-year free cash flow. Investors could be taking some profit after a strong year that saw shares rally 28%. Viking Therapeutics — Shares dropped 6% after the biopharmaceutical company recorded a wider-than-expected loss per share than Wall Street anticipated. Viking said it lost 58 cents per share in the second quarter, while analysts polled by FactSet expected a 45 cents a share loss. Molina Healthcare — Shares dove 7% on weaker-than-forecast earnings. Molina earned an adjusted $5.48 per share versus LSEG's analyst consensus estimate of $5.79 per share. — CNBC's Yun Li and Tanaya Macheel contributed reporting
Axios
3 hours ago
- Business
- Axios
What meme stock mania says about the market rally
Meme stocks are back, with GoPro, Opendoor and Krispy Kreme rallying double digits this week thanks to retail investors and Reddit threads. Why it matters: The retail resurgence is the latest signal that investors are willing to take on more risk, as stocks keep hitting record highs and it gets harder to beat the broader market. What they're saying: "The environment is just kind of ripe for it. We're seeing it in crypto as well," Tom Bruni, editor in chief of Stocktwits, a social media platform for retail traders, told Axios. The meme stock rally comes as other parts of the market, from the broader index to bitcoin, are also hitting record highs. Catch up quick: The meme stock craze kicked off during the pandemic, when stimulus checks coupled with time at home to scroll through Reddit threads led to a retail trading boom. Amy Wu Silverman, an equity derivatives strategist at RBC, told Axios that moment represented a "sea change" that hasn't gone away, though there have been fits and starts of mania since 2020. The intrigue: The current moment is indicative of a challenge institutional investors also face: how to beat the S&P 500 when Big Tech is the dominant driver of returns. Retail investors are looking for "catch up plays," Bruni said. Institutional investors are looking for opportunity as well. "This is kind of…the deep dark secret, which is like, I don't know, do you have an edge?" Silverman said. Between the lines: Wall Street is paying more attention to retail activity. "The biggest question I've gotten recently from my clients is like, how can we get ahead of it?" Silverman said. "You need to read Wall Street Bets," she said, referring to the uber popular Reddit forum. How it works: Here's the anatomy of a meme stock, per Bruni and Silverman: Companies with high short interest (investors are betting against them). Nostalgia plays and brand names that people can get behind. A fundamental case for a revival, likely shared on a Reddit thread, which then goes viral and grabs the attention of other investors. What we're watching: When does the party stop? Watch for the short squeeze element to be over. Look for calls outweighing demand for puts on the options market. If that gets really high, it indicates "peak meme frenzy," Silverman said. Even if the meme stock rally loses some steam, the broader market rally is showing no signs of letting up in the near term. The bottom line: Meme stock traders are no longer a punchline. They've become a force that Wall Street, begrudgingly or not, has to monitor.
News18
11 hours ago
- Business
- News18
What Are Meme Stocks And Why Krispy Kreme and GoPro Are In The Spotlight
Last Updated: GoPro and Krispy Kreme became the latest favourites of retail traders on social media, with both stocks soaring on July 23 amid a renewed wave of meme stock enthusiasm. Retail traders on Reddit and other social media platforms appear to have found their next targets, as shares of GoPro and Krispy Kreme soared on July 23 in a resurgence of meme stock mania. The action mirrored previous social-driven trading frenzies, with Krispy Kreme climbing by as much as 70% in premarket trading before paring gains to 26% at market open. According to CNN, wearable camera maker GoPro recorded its best trading day ever on 22 July, closing 41% higher, and extended those gains by rising over 50% during the morning session on 23 July. These latest rallies evoked memories of the early 2021 frenzy, when an army of everyday retail traders united online in a get-rich-quick crusade, taking on the so-called financial elites of Wall Street in a dramatic showdown. Now, alongside GoPro and Krispy Kreme, plant-based food producer Beyond Meat was also being discussed in meme stock circles. Krispy Kreme's Rollercoaster Ride The doughnut giant, once a cult favourite, has seen years of declining earnings and shrinking revenue. On July 22 alone, Krispy Kreme stock rose 26.7%. The jump on July 23 further extended its gains, even as analysts predict a loss for the company in 2025. Recently, the company withdrew its full-year financial forecast as it reevaluated its distribution agreement with McDonald's. Despite this uncertain outlook, the online buzz was enough to send shares flying. Such is the nature of meme stock trading, where momentum, instead of fundamentals, often drives price movements. What Exactly Is A Meme Stock? According to Investopedia, a meme stock is a company's share that experiences a sharp rise in popularity and trading activity, largely driven by social media buzz and online communities instead of its financial performance. Platforms like Reddit, X (formerly Twitter) and Facebook often serve as hotspots for intense discussions, crowd-sourced analysis and collective speculation that fuel these stock surges. On Reddit, communities like r/wallstreetbets can single-handedly elevate a little-known or struggling company into stock market stardom. Meme stocks often begin as heavily shorted equities, meaning professional investors are betting their value will fall. But when retail traders start piling in and the price rises, it can trigger what's known as a 'short squeeze." In this scenario, short sellers rush to buy back shares to limit their losses, which pushes the price even higher. The meme stock saga began in August 2020 when YouTuber Roaring Kitty posted a viral video predicting that GameStop's shares, then trading around $5, could soar to $50. He said that the stock had one of the highest short interests in the market, mostly held by hedge funds, making it ripe for a short squeeze. Soon after, former CEO Ryan Cohen quietly bought into GameStop. By November 2020, it was revealed he held a 10% stake. Cohen joined the company's board in January 2021, triggering a sharp rally, and the stock doubled within days. The short squeeze erupted later that month. GameStop shares skyrocketed to nearly $500 as retail investors piled in and short sellers rushed to cover losses. Several hedge funds took massive hits, with some shutting down entirely. The movement was hailed as a modern-day David vs. Goliath story, with retail traders taking on Wall Street's elite. Mechanics Behind The Mania The roots of meme stock behaviour go back decades to the internet-fuelled trading forums of the dotcom era. But the phenomenon really took shape in 2020 with the rise of WallStreetBets on Reddit. The forum brought together retail investors willing to challenge conventional Wall Street wisdom and take big risks. These communities don't function like traditional investment firms. There's no formal leadership or strategy. Instead, they operate as loosely knit collectives, often driven by internet humour, rebellion against hedge funds or the thrill of a rally. view comments Location : Delhi, India, India First Published: July 24, 2025, 09:26 IST News viral What Are Meme Stocks And Why Krispy Kreme and GoPro Are In The Spotlight Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
