Retail bros charged into U.S. markets at Wednesday’s Open, lifting GoPro nearly 50% and pushing Krispy Kreme up 12%, after both stocks were picked up by Reddit’s WallStreetBets community.
Both names are the latest additions to the forum’s high-risk favorites, joining a new lineup of meme stocks that have surged this month despite weak fundamentals or earnings updates.
One user on Tuesday night posted, “60k DNUT YOLO,” referencing the ticker for Krispy Kreme, in a clear sign that this round of speculation is all about attitude. Just like the GameStop mania of 2021, traders are hunting stocks that hedge funds have shorted heavily, hoping to push prices up and force exits. The pattern is identical. The tickers, not so much.
Reddit traders hunt shorted names again
This week’s rally wasn’t a fluke. Day traders have returned to WallStreetBets in large numbers, pushing what they call “you-only-live-once” plays on companies with high short interest. GoPro and Krispy Kreme were two of the biggest movers, but the frenzy isn’t just about them.
CNBC scanned U.S. markets to identify other possible meme trades using three criteria: stocks with short interest above 30%, market values between $50 million and $2 billion, and share prices under $20. It’s a formula built to find the next target.
WallStreetBets users appear to be chasing exactly that. Instead of circling back to GameStop or AMC, traders are rotating into names that were barely mentioned before. But their goal remains the same: corner hedge funds.
That strategy has reemerged alongside a bigger push into equities overall. Data from VandaTrack shows individual investors put $155 billion into U.S. stocks and ETFs during the first half of the year, overtaking inflows from the 2021 meme stock bubble.
Meanwhile, the S&P 500 hit its 11th all-time high of 2025 on Monday, showing just how much appetite there is for risk. While some of that is institutional, a chunk clearly belongs to the speculative crowd. They aren’t waiting for confirmation or earnings beats, they’re diving into trades that carry real downside.
Galaxy Digital draws attention from Wall Street
Outside the Reddit sphere, crypto-linked names are also pulling in interest. On Tuesday, Jefferies gave a buy rating to Galaxy Digital, with analyst Jonathan Petersen setting a $35 price target, estimating roughly 20% upside from Tuesday’s closing price. Petersen pointed to clearer U.S. crypto regulations and surging demand for AI data centers as drivers for Galaxy’s long-term value.
Galaxy originally entered bitcoin mining in 2020 but has shifted since then. Now, its mining infrastructure is being repurposed to host AI and high-performance computing operations. The company’s Helios facility in West Texas is already supporting workloads for CoreWeave, a major player in AI computing. Petersen emphasized that most of Galaxy’s expected growth is tied to this shift.
Elsewhere in the market, more meme tickers showed movement. Coinbase dropped to $391, falling 3.32%. Robinhood dipped 0.45% to $101.39. AMC traded at $3.48, down 0.71%. Circle climbed slightly to $198.87, while GameStop ended the day at $24.20, slipping 0.23%. None of these moves was driven by earnings, guidance, or any material disclosures. They were driven by speculation alone.
Back in Asia, Japan’s currency made headlines for different reasons. The yen gained ground against the dollar and euro early Wednesday after U.S. President Donald Trump announced a new trade agreement with Japan. But those gains were short-lived.
News broke midday that Prime Minister Shigeru Ishiba might resign after his party lost an upper house election. Although Ishiba responded quickly, calling the resignation talk “completely unfounded,” the yen briefly fell before bouncing back. By the close of day, the dollar was down 0.1% to 146.44 yen, and the euro had dropped 0.3% to 171.82 yen.