As the stock market hits record highs in mid-2025, the speculative spirit that fueled the 2021 meme stock frenzy has reignited, with a fresh batch of unconventional names capturing retail investors’ attention. Opendoor, Krispy Kreme, Kohl's, GoPro, and Rocket Lab have emerged as the new darlings in a market driven less by fundamentals and more by social media hype and collective risk appetite.
From GameStop to the DORKs: A New Meme Stock Era
Where once GameStop and AMC symbolized retail investors’ defiance of Wall Street, 2025’s meme stock moment is defined by what traders now call "the DORKs" — an acronym representing Krispy Kreme, Opendoor, Rocket Lab, and Kohl's. Each of these stocks shares something in common: high short interest making them vulnerable to volatile short squeezes, yet also ripe for social-media-fueled rallies. Kohl’s, for example, has a short float near 49%, while Krispy Kreme’s stands at over 30%, amplifying their allure to momentum-driven traders.
Retail enthusiasm is swelling around these names, spurred by hedge fund managers like Eric Jackson who publicly champion Opendoor’s long-term potential, helping lift its stock price by over 300% in July alone. Yet, as Interactive Brokers strategist Steve Sosnick puts it, the staying power of these rallies appears limited—"it could all end tomorrow"—as many investors buy in with speculative zeal disconnected from company fundamentals.
Risk and Reward in a Social Media Era
The market’s backdrop of steady gains since April 2025 and rebounding trust in technologies like AI (seen in major tech names) has bolstered retail appetite for risk, extending to cryptocurrencies and special purpose acquisition companies (SPACs). This risk-on sentiment is reflected in options data showing calls account for 68% of volume—the highest since the 2021 meme craze—and elevated trading in low-priced stocks.
However, the frenzy is a double-edged sword. While some investors have profited handsomely by betting against institutional pessimism during volatile market dips, experts caution that these surges are "often disconnected from company fundamentals and can reverse violently." Indeed, a recent study from the CFP Board found that 57% of Americans made regrettable financial decisions based on online information, highlighting the dangers embedded in chasing hype trades.
The Broader Market Impact and Outlook
Though meme stocks currently occupy niche corners of the market, their influence has arguably contributed to the benchmark indices’ all-time highs. The so-called "short squeeze" dynamic has rippled beyond these flickering stars, with some strategists suggesting it played a notable role in the broader market recovery post-April’s sharp selloff.
Yet, with valuations stretching thin and froth building around stocks with weak financials but high multiples, market veterans urge caution. BlackRock's Tony DeSpirito describes meme stocks as "the epitome of greed"—advising traders to favor fundamentally sound companies over speculative favorites.
In essence, the meme stock phenomenon in 2025 is a vivid reflection of modern market dynamics where social media, retail enthusiasm, and trading technology converge to create powerful but precarious rallies. As history hints, such episodes often precede abrupt corrections, reminding investors that while volatility can be exhilarating, it demands prudence.
