New frenzy
The meme stock rally is resurfacing as equity markets continue to hit new highs. It’s being bolstered by optimism over economic data, trade deals, and expectations for a coming Fed easing cycle. Earnings season has also been another boon for stocks, with Big Tech set to report this week amid the AI revolution and heavy investment coming into the U.S.
Snapshot: While optimism is definitely in the air, that doesn’t necessarily mean there is froth, with plenty of money coming off the sidelines and more to go around. While that can spell good tidings for the overall market, traders looking to make a quick buck off the accompanying meme stock rally face the risk of being left holding the bag. Wild trading has ensued for this group of speculative names, with some new players being flagged on social media, like Opendoor Technologies (OPEN), QuantumScape (QS), Krispy Kreme (DNUT), GoPro (GPRO) and Beyond Meat (BYND). Charles Schwab Expands Overnight Trading
Buyers beware: While Opendoor (OPEN) was changing hands at only $0.50 at the beginning of the month, it has since soared over 460% to above the $3 level before taking a turn south. The digital real estate stock tumbled 10% in a volatile session yesterday and is down another 7% in premarket trading. “The company remains highly leveraged, unprofitable, and exposed to real estate market risks, despite operational progress and cost controls,” SA analyst Julia Ostian wrote in Opendoor’s Meme Moment: Big Bet Or Big Trap? “Upcoming earnings on August 5 could fuel further volatility; a strong report may trigger another rally, while disappointment could crash the stock.”
Meme on! Some legacy meme names have also made a comeback, like Kohl’s (KSS), whose high short interest makes it a popular play among the retail crowd. Shares of the department store operator surged 38% on Tuesday in a volume-packed session that saw the stock reach its highest level since November 2024. Smaller gains were also seen among the broader meme group, including Koss Corporation (KOSS), Clover Health (CLOV) and Mullen Automotive (MULN), as well as Avis (CAR), Cyngn (CYN) and MicroAlgo (MLGO).
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