Published on: 2025-02-27 Updated on: 2025-09-08
Meme stocks gained international attention in 2021, as the shares of GameStop and AMC soared due to Reddit groups like WallStreetBets. At the time, it seemed like an extraordinary anomaly. Yet in 2025, the trend is far from dead.
In fact, stocks like Opendoor, Kohl's, GoPro, Krispy Kreme, and even Wendy's have recently experienced dramatic surges, proving that the meme-stock phenomenon has matured rather than disappeared.
This article breaks down what meme stocks are, why they continue to thrive, the tools driving today's rallies, and the risks traders should watch out for.
Meme stocks are equities that rise (or fall) sharply due to online hype, viral trends, or social media campaigns, rather than changes in business fundamentals.
Key features include:
Retail-driven trading via Reddit, X (formerly Twitter), and Discord.
Short squeezes, where retail traders target highly shorted stocks to force covering.
Community narratives such as "diamond hands" or "MOASS" (Mother of All Short Squeezes).
Although they began with GameStop and AMC in 2021, current meme stocks now feature firms from the real estate, retail, and consumer goods sectors.
Fast forward to 2025, and meme stocks are back. Recent examples include:
Opendoor (OPEN): Surged after renewed Reddit interest, with its former CEO cashing in on the rally.
Kohl's and GoPro: Retail traders piled into these names despite mixed fundamentals. (The Guardian)
Krispy Kreme and Wendy's: Benefited from social media hype, showing meme momentum extends beyond tech and retail.
These examples highlight that meme stocks are no longer limited to struggling movie theatres or gaming retailers as they now extend to any stock with social resonance.
Meme trading never really went away; it evolved. Several factors explain the 2025 resurgence:
Platforms now use AI to scrape Reddit threads, TikTok videos, and Twitter posts, turning viral mentions into trading signals.
Retail investors closely monitor live short-interest data, allowing them to target vulnerable stocks more effectively.
The rise of zero-day-to-expiry (0DTE) options has made speculative meme plays even riskier, amplifying price swings within a single trading session. (Barrons)
Meme trading has become integral to the identity of retail investors, as social media memes, livestreams, and influencer calls to action still fuel FOMO buying.
In mid-2025, Opendoor (OPEN) became a new meme darling. A wave of retail buying drove shares up sharply, allowing the company to issue stock at inflated levels. Meanwhile, its former CEO realised large personal gains. (The Wall Street Journal)
This case study shows both sides of meme momentum: retail enthusiasm can provide companies with liquidity, but individual investors risk buying near unsustainable peaks.
Trading meme stocks isn't inherently bad; it just requires awareness. For some, it's entertainment and speculation. For others, it's about testing collective power against Wall Street.
Best practices include:
Never invest more than you can afford to lose.
Avoid excessive leverage.
Regard meme stocks as speculative investments rather than foundational ones.
Track community sentiment and short-interest data carefully.
As mentioned above, meme stocks are exciting but risky. Investors should be cautious of:
Pump-and-dump dynamics: Hype can collapse overnight, leaving late entrants with heavy losses.
High leverage: Traders often use margin or options, magnifying risks.
Regulatory attention: SEC monitoring has increased since 2021, raising potential compliance hurdles.
Market froth: Analysts warn recent rallies show signs of speculation divorced from fundamentals.
A stock that rises sharply due to viral internet hype and retail buying, not fundamentals.
In 2025, AI sentiment trackers, faster retail platforms, and 0DTE options make rallies more volatile and short-lived.
They're highly speculative. Safe only if treated as high-risk trades, not long-term investments.
Use stop-losses, avoid chasing parabolic moves, and diversify beyond speculative positions.
In conclusion, meme stocks are not merely a 2021 trend. Today, they symbolise a continuous trend that is transforming how retail investors interact with the markets. In 2025, driven by AI sentiment analysis, short-term options, and social media excitement, meme stocks are a captivating yet unpredictable phenomenon.
For traders, they offer opportunity and risk in equal measure. For markets, they highlight the growing influence of digital communities. Until regulation catches up, meme stocks will continue to blur the line between entertainment, speculation, and investing.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
