Meme stock whiplash

Don’t call it a comeback.

If 2025 proved anything, it’s that meme stocks aren’t going anywhere. While GameStop may be the OG, this year showed that cheap, familiar names can still be spun into overnight sensations thanks to the power of social media.

Here’s a quick recap of the biggest meme stocks of 2025, and how they’re doing now:

1. Opendoor’s summer rally was sparked by hedge fund manager Eric Jackson’s viral thesis on X, where he disclosed buying shares at roughly $0.70. The stock at one point enjoyed an 800% gain in July, and now trades at $6.28, up 292.5% YTD.
   
   The retail-driven rally didn’t just boost the stock price, it triggered real pressure on the company to improve its underlying business. Investors flooded management with demands for strategic changes and pushed for the return of co-founders Keith Rabois and Eric Wu. They successfully drove out former CEO Carrie Wheeler, and the stock jumped 68% in a single day after the announcement.
2. Beyond Meat’s hype began when Dimitri Semenikhin posted a bullish analysis of the company’s growth potential on Reddit, helping the stock soar 1,300% in just four days. But the momentum collapsed after the company finally released its delayed Q3 earnings in November, revealing weak demand from both shoppers and restaurants. Shares fell 12% on the report, and are now down 73.76% YTD.
3. Krispy Kreme has been another unusually volatile name this year. Shares sank 6.8% in August after its partnership with McDonald’s fell apart, prompting JPMorgan to describe the company as being in “survivor mode.” But the stock staged multiple unexplained rallies, jumping nearly 40% in a single day in July and surging more than 50% over a week in October, moves that Morgan Stanley attributes to an “iconic company with lower brand risk.” However, the bursts of momentum weren’t enough to offset the broader weakness: shares are down 57.3% YTD.
4. American Eagle jumped 10% a day after announcing a new partnership with Sydney Sweeney in late July, sparking a wave of online buzz. But shares slipped once the campaign debuted and drew mixed reactions. The stock roared back though, rising 23% in a single day after President Trump called it “the hottest ad out there.” Shares are up 60% YTD.

While it can be tempting to dive in when meme stocks are popping, considering that these investments are divorced from fundamentals, packed with short interest, and their rally is powered almost entirely by retail investors, the risks often outweigh the rewards.—SY