Latest news with #GameStop
Yahoo
39 minutes ago
- Business
- Yahoo
Meme Stocks Are Coming Back in 2025 — 3 Red Flags To Watch Out For
Meme stocks are making a comeback this summer. In 2021, stocks like GameStop (GME) and AMC (AMC) that no one cared about suddenly skyrocketed to all-time highs. This time, Opendoor (OPEN), Kohl's (KSS), GoPro (GPRO) and Krispy Kreme (DNUT) have all jumped in price not because these companies are doing better, but due to a wave of online hype. Read Next: Check Out: While some people will make quick profits, many others could lose money just as fast. Before you jump into meme stocks, here are some red flags you should look out for. Big Price Jumps Without Fundamentals When a stock skyrockets by hundreds of percent in a few days, it's easy to think you're missing out on something big. But in many cases, the surge is driven by hype, not company fundamentals. For example, in late July, Yahoo Finance reported that Opendoor stock rose by more than 300% over the previous month. As of Aug. 12, 2025, GoPro has soared by more than 56% over the past month. When you see this pattern — stocks rising dramatically without any good news — it's often a sign of speculative frenzy. When the excitement fades, those gains can disappear quickly. So don't be the one jumping in late because you'll likely lose money. Explore More: Heavy Short Interest When a stock is heavily shorted, investors are betting it will drop, and it can lead to increased volatility. If the stock's price goes up instead, those investors will rush to buy it back to limit losses, which can drive the stock price even higher. This sudden surge is known as a short squeeze. In late July, Forbes reported that nearly half (49%) of Kohl's outstanding shares were short positions, while Opendoor had approximately 21% of its shares sold short. These jumps can be so tempting, but the real danger is that once those shorts are covered and buyers lose interest, prices can fall just as explosively as they rose. AI and Social Media Hype In 2025, meme stocks aren't just riding the waves from Reddit forums. Artificial intelligence (AI) is turbocharging them. 'Meme stocks in 2025 rely on AI-driven sentiment analysis and real-time short-interest data, replacing viral tweets and impulsive buying,' according to AInvest. AI-powered stock-tracking tools can scan social media, forums and news headlines for spikes in specific stock mentions or unusual trading activity. When a stock suddenly trends, these tools could alert thousands of traders. This can create a loop where the same stock names keep getting pushed online, potentially becoming meme stocks. That's one reason meme stocks can see wild gains in a matter of days and then plummet quickly once the loop moves on to the next big thing. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 10 Cars That Outlast the Average Vehicle 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years This article originally appeared on Meme Stocks Are Coming Back in 2025 — 3 Red Flags To Watch Out For Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Business
- Yahoo
Meme Stocks Are Coming Back in 2025 — 3 Red Flags To Watch Out For
Meme stocks are making a comeback this summer. In 2021, stocks like GameStop (GME) and AMC (AMC) that no one cared about suddenly skyrocketed to all-time highs. This time, Opendoor (OPEN), Kohl's (KSS), GoPro (GPRO) and Krispy Kreme (DNUT) have all jumped in price not because these companies are doing better, but due to a wave of online hype. Read Next: Check Out: While some people will make quick profits, many others could lose money just as fast. Before you jump into meme stocks, here are some red flags you should look out for. Big Price Jumps Without Fundamentals When a stock skyrockets by hundreds of percent in a few days, it's easy to think you're missing out on something big. But in many cases, the surge is driven by hype, not company fundamentals. For example, in late July, Yahoo Finance reported that Opendoor stock rose by more than 300% over the previous month. As of Aug. 12, 2025, GoPro has soared by more than 56% over the past month. When you see this pattern — stocks rising dramatically without any good news — it's often a sign of speculative frenzy. When the excitement fades, those gains can disappear quickly. So don't be the one jumping in late because you'll likely lose money. Explore More: Heavy Short Interest When a stock is heavily shorted, investors are betting it will drop, and it can lead to increased volatility. If the stock's price goes up instead, those investors will rush to buy it back to limit losses, which can drive the stock price even higher. This sudden surge is known as a short squeeze. In late July, Forbes reported that nearly half (49%) of Kohl's outstanding shares were short positions, while Opendoor had approximately 21% of its shares sold short. These jumps can be so tempting, but the real danger is that once those shorts are covered and buyers lose interest, prices can fall just as explosively as they rose. AI and Social Media Hype In 2025, meme stocks aren't just riding the waves from Reddit forums. Artificial intelligence (AI) is turbocharging them. 'Meme stocks in 2025 rely on AI-driven sentiment analysis and real-time short-interest data, replacing viral tweets and impulsive buying,' according to AInvest. AI-powered stock-tracking tools can scan social media, forums and news headlines for spikes in specific stock mentions or unusual trading activity. When a stock suddenly trends, these tools could alert thousands of traders. This can create a loop where the same stock names keep getting pushed online, potentially becoming meme stocks. That's one reason meme stocks can see wild gains in a matter of days and then plummet quickly once the loop moves on to the next big thing. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 10 Cars That Outlast the Average Vehicle 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years This article originally appeared on Meme Stocks Are Coming Back in 2025 — 3 Red Flags To Watch Out For Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
3 days ago
- Business
- Miami Herald
Analyst says popular meme stock is an exercise in futility
Meme stocks come and go. Then they come back and go again. A whiff of positive news – a good line in an earnings report, a hint of a merger, a rumor potentially started by a trader looking to unload a position at a profit – can bring any meme stock back to the fore. With the second busiest week of earnings season now over, that kind of action was visible this week, prompting one researcher to issue a fresh warning about an old meme stock that recently caught fire again. While meme stocks create new stories and legends with each passing cycle, the truth about many of these companies is that they are working their way towards nothing-the abyss that awaits when social sentiment finally wanes and the balance sheet is all that is left. Think Bed, Bath & Beyond, which was trading at less than $4 per share in 2020 when it got caught up in the meme mania ignited by video-game retailer GameStop (GME) . Share prices surged past $50 per share before the public's attention turned and the company began an inexorable death spiral, buried under a mountain of debt and other problems. Bed Bath & Beyond filed for protection from creditors under Chapter 11 of the U.S. bankruptcy code in April of 2023 and subsequently closed its 360 stores. But it's hardly alone. AMC Entertainment (AMC) was an OG meme stock with GameStop. Three years ago, it was trading at over $130 per share, but now it trades at less than three bucks a share, roughly 50 percent off its 52-week high. GameStop, meanwhile, trades roughly where it was a year ago but is off by over 30 percent from its most recent peak in mid-May. While yesterday's meme stocks are likely to rekindle some interest periodically, they have been replaced by names like Opendoor, Krispy Kreme, GoPro, and Kohl's, all of which have ridden the tsunami that can happen when social media and active traders mix. David Trainer, founder and president at New Constructs, a Nashville-based independent investment research firm, has said for years that meme stocks are all about a trader's willingness to focus on hype and hope and ignore numbers. He believes the numbers win out in the end, but he acknowledges that plenty of stocks overcome bad news to be back in the market's good graces even while they are on a fiscal path to oblivion. Peloton Interactive (PTON) -which has been in the realm of meme stocks since it became a darling of the pandemic-got just that kind of boost on August 7, when it reported a profit for its fiscal fourth quarter, boosting shares by about 10% while the market ignored a warning that sales of exercise machines and digital subscriptions are set to decline, requiring some layoffs and a relocation of operations to cut costs. The fitness-equipment maker registered a $21.6 million profit (5 cents a share), compared to a loss of $31.9 million a year earlier. According to a FactSet survey, analysts on average were expecting a loss of 7 cents a share, slightly better than a year ago. But before the positive earnings surprise, Trainer was already calling for Peloton to suffer the ultimate meme stock fate, featuring the stock on the August 4 edition of "The Danger Zone" on the Money Life with Chuck Jaffe podcast. Related: Top analyst sends message on pending ugly earnings miss (plus one big beat) New Constructs brings together discounted cash-flow analysis and forensic accounting to evaluate securities on a scale of "most attractive" to "most dangerous." The firm's stock-picking has been rated by SumZero at or near the top of multiple investment categories, most notably leading consistently in consumer discretionary stocks; SumZero is a buy-side community in which more than 15,000 professional portfolio managers compete for Constructs first featured Peloton in the Danger Zone prior to its IPO in September 2019; since then, the firm reports that its shares have fallen 72% while the Standard & Poor's 500 is up roughly 115%. But what put Peloton back in the Danger Zone recently is that meme-stock investors are tuning out the company's long-term results and looking at its recent performance. Shares are up more than 100% from last August, largely due to shrinking losses. New Constructs reported that, "this turnaround story is already baked into the stock valuation, and at current prices, downside risk remains large," driven by declining sales, high cash burn, the sale of assets, shareholder dilution, and "a stock valuation that implies drastic margin improvement and rapid revenue growth." Trainer, in his Danger Zone appearance on the August 4 edition of Money Life, said Peloton is "making a little meme stock run here … and we just want to remind people that it's still a bad stock." "Peloton still has negative margins, negative economic book value, and it's trading as if its profits are going to dramatically increase and its revenues are going to grow 800%," Trainer said. "So like whatever turnaround you think there might be here, you know, we think it's all priced in." Trainer said Peloton's "business model is not a good business model," noting that the bounce-back is a misdirect or a head fake and that Peloton is "just left with something that's going to probably die pretty slowly." He acknowledged that the stock could still have another meme stock run, possibly a dead-cat bounce and can survive for a while until he thinks the inevitable happens. He pegged the economic book value on PTON at a negative $6.60 per share, adding that it's first-mover advantage in the home exercise space is gone, and that he would value the company "conservatively" at less than a dollar per share. Said Trainer: "This one could really go bankrupt." Related: Analyst says popular pet-food company's stock is spoiled The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
New York Post
4 days ago
- Business
- New York Post
Sydney Sweeney ad uproar revives meme-stock ‘squeeze' play
American Eagle's stock meteoric rise after showcasing actress Sydney Sweeney's best assets in its jeans ad has put the company at risk of a dreaded short squeeze, On The Money has learned. Yes, the uproar over the spicy campaign featuring the blonde honeypot – which the 'woke' mob has branded as racist – has breathed new life into the meme-stock phenomenon of torching short seller-professional investors who bet shares will tank by 'squeezing' American Eagle's stock to new heights, sources who follow the money said. During its pandemic-induced craze days in 2021, a massive squeeze put a hedge fund out of business – to the delight of millions of retail traders who banded together to drive stocks like GameStop and AMC to the moon. 3 The uproar of American Eagle's ad campaign with Sydney Sweeney has breathed new life into the meme-stock phenomenon of torching short seller-professional investors who bet shares will tank by 'squeezing' American Eagle's stock to new heights. Donald Pearsall/NY Post Design The odd cultural moment involving American Eagle could make it ripe for a similar buying frenzy. So-called short interest in the stock (an indicator of how many negative bets are being placed) was at an already dangerously high level of 31% before the ad for the 'Euphoria' star touted her good 'jeans' and 'genes,' according to S3 Partners, which follows shorting by professional traders. Then, when Sweeney flashed her all-denim look in July, shares began to tick up. Massive publicity, first positive, that the sultry starlet generates got people once again talking about the fading jeans company. Even when the looney lefties began to attack the ad for promoting white nationalism – because the commercial for the blonde and blue-eyed beauty played with the word 'genes' – shares held their ground. Sales of American Eagle jeans didn't falter because let's face it, most Americans aren't idiotically woke. 3 Massive publicity, first positive, that the sultry starlet generates got people once again talking about the fading jeans company. American Eagle Enter Donald Trump. Our president is an expert at reading the mood of the country and he's not bad at finance either. As the controversy swirled, and knowing that his voters and most Americans have had it with woke, he pounced. First, it was at a press conference Monday when he was told that the actress – better known for her cleavage than her politics – is a registered Republican. He quipped 'Oh, now I love her ad.' A bit later, after he was probably given a full briefing on the contretemps, he followed with a Truth Social Post: 'Sydney Sweeney, a registered Republican, has the 'HOTTEST' ad out there. It's for American Eagle, and the jeans are 'flying off the shelves.' Go get 'em Sydney! …The tide has seriously turned — Being WOKE is for losers, being Republican is what you want to be. Thank you for your attention to this matter!' Shares responded, soaring by a whopping 30% in just a few hours to close Monday at $13.08. 3 Sales of American Eagle jeans didn't falter because let's face it, most Americans aren't idiotically woke, Charles Gasparino writes. Getty Images Bob Sloan, the CEO of S3 and my partner in the 'Risk and Return' podcast, is the godfather of deciphering short and long-holding stock data. He tells me shorts are now breaking even with their bets but the stock is 'getting squeezier,' which means it's entering dangerous territory for negative trading bets. Another Trump tweet, and some improving fundamentals like a spike in jeans sales based on the controversy could easily put it in squeeze land, Sloan added. The stock's surge is a rare win for a company that reported sub-par performance in the latest quarter, even showing a loss as sales slipped from a host of headwinds – from higher tariff-related costs to increases in promotional expenses. Charlie Gasparino has his finger on the pulse of where business, politics and finance meet Sign up to receive On The Money by Charlie Gasparino in your inbox every Thursday. Thanks for signing up! Enter your email address Please provide a valid email address. By clicking above you agree to the Terms of Use and Privacy Policy. Never miss a story. Check out more newsletters But it also might bring us back to the 'squeeze days' when sharp increases in the price of a handful of beaten-down and heavily-shorted stocks became national news. In a short sale a trader borrows a stock, sells it, and hopes to make money repaying the borrow at a lower price. The borrower loses money if the stock rises – and wads of it if he's 'squeezed' by ever high prices— which is what happened during the meme craze. Stay tuned to see if that cycle repeats itself.
Business Insider
5 days ago
- Business
- Business Insider
I feel more Chinese in the US and more American in China. I have to switch between 2 personalities.
This as-told-to essay is based on a conversation with Jeff Niu, 31, a Columbia University graduate and American-born Chinese living in Beijing. His words have been edited for length and clarity. I'm an ABC (American-born Chinese), and I'm most definitely both Chinese and American. I feel more Chinese in the US and more American in China. I have to code-switch between two personalities. It can be disorienting, but it also helps me see the strengths and flaws of both cultures. My parents met at medical school in Beijing. Our family immigrated to the US in the early '90s, when my dad got a job as a biomedical researcher. I was born in Flushing, Queens, five years after my sister, who was born in Beijing. Growing up in Flushing, with many Asian communities — Cantonese-speaking Chinese, Putonghua-speaking Chinese, Taiwanese, Koreans — it was easier to distinguish between different Asian identities. It's one of the few places in the US where the Asian diaspora feels truly granular. In Flushing's Chinatown, I'd hear Chinese on the streets and eat bao buns next to people who sounded like my parents. In New York, I felt distinctly Chinese-American. From Flushing to suburbia That changed when we moved to California during my teens. In a city with fewer Asians, I became more aware of being "Asian American." Whenever I met new Asian friends, there was this unspoken understanding: You're not Chinese, and I'm not Filipino, Vietnamese, Korean, or Japanese — but we like the same things. We bond over boba, K-pop, and math. One of my earliest memories is watching "My Fair Princess" with my grandparents in Beijing, where I spent every summer until middle school. I watched the city change year by year. Construction sites were everywhere, and people seemed hopeful about the future. While Beijing was undergoing a generational metamorphosis, my hometown of Moorpark — a suburb in Southern California — was losing its only movie theater, a GameStop, and the few nice restaurants we had. I was in high school during the 2008 financial crisis. California was hit hard: a million jobs were lost, public budgets collapsed, school programs were cut, teachers were laid off, and development stalled. It was a stark contrast to what was happening in China. Going back to Beijing I was 14 when I went to Beijing for the Olympics. Fireworks lit up the sky, smoke hung in the air, but what struck me most was the energy. It was electric, unforgettable. That moment stayed with me, and from then on, I began following news about China more closely. I studied at Sciences Po in France before pursuing East Asian Studies at Columbia University. At Columbia, I was surprised to find that many professors hadn't been to China in decades. Their frameworks felt ideological, disconnected from the country's lived reality. In 2013, I returned to Beijing for an internship and to visit my grandmother. I thought she was still alive, but when I arrived, I learned she had died. My parents hadn't told me — they didn't want to distract me during finals. That summer, I stayed with my grandfather and worked at an education consultancy. After graduation, I had job offers in the US and China in strategy consulting and experiential education. Instead, I moved to Beijing to pursue a master's degree in China Studies — economics and management, through the Yenching Scholarship at Peking University. Nine years later, I'm still in China. Differences in the working world The longer I stay in China, the more I feel both Chinese and American. I eat a mix of Chinese and American food, always craving whatever I'm missing at the moment. Beijing has great burgers, but I still miss New York delis — the eggplant parm, the turkey melts. I love a good sandwich. Another thing I miss is less tangible: the organizational culture. After graduating from Peking University, I joined a design consultancy, then moved to a healthcare company a year later. I was the only US-born employee, and most people didn't realize I was American. I wanted to know what it was like to be treated as a Chinese employee. It was hard. There's a dumbed-down argument that people in China lack creativity, but not everybody has the privilege to channel that energy. In the US, there's more of an effort to empower employees. In China, companies are founder-led, with everyone executing their vision. I once broke my ankle and led a project from a wheelchair. The company still insisted I come in. I do see a lot of changes in China's organizational culture, management philosophies, and understanding of "value" — mostly trending in a positive direction. Those three years helped me understand how top-down policies land at the project level, which is exactly what I wanted to learn when I moved to China. From there, I moved to a growth investment fund. In New York, jumping from design to private equity would have been impossible. In China, it was just another career pivot. A few months ago, I left to start my own business: Dusk, a creative equity firm that blends venture capital, private equity, and design. My grandfather is 93, and for a while, I was his only family here. As long as he's alive, my plan is to stay in Beijing.
