A fresh wave of retail investor activity is fuelling sharp gains in some of the most heavily shorted US-listed companies, reviving echoes of the 2021 meme stock frenzy.
Shares of Krispy Kreme, GoPro, Beyond Meat, and 1-800-Flowers.Com saw dramatic premarket spikes on Wednesday, driven by a surge in social media chatter and retail interest following Tuesday’s volatile rally in department store chain Kohl’s.
Data from Ortex and Vanda Research point to an uptick in short interest and speculative trading activity, as retail investors target stocks with high short float in hopes of triggering short squeezes.
The coordinated attention, mostly through platforms like Stocktwits and Reddit forums, appears to have reignited market dynamics reminiscent of pandemic-era speculative surges.
Krispy Kreme up 23% on short interest
Krispy Kreme shares surged another 23% in premarket trading on Wednesday after already climbing nearly 27% in the previous session.
The doughnut chain is one of the most shorted US companies, with about 32.2% of its free float shorted, according to data analytics firm Ortex.
This high level of short positioning has made the stock vulnerable to a short squeeze — a scenario where short sellers are forced to cover their positions by buying back shares, driving the price even higher.
Investor attention intensified following Tuesday’s broader rally, as market participants began scanning for similar setups in other stocks.
The sharp movement in Krispy Kreme, despite no new fundamental developments, signals a momentum-driven play largely influenced by sentiment and positioning.
GoPro gains 45% in premarket trade
GoPro, another stock with a high short float, climbed roughly 45% in premarket trade to $2, on track to extend its more than 41% rise from Tuesday’s session.
Like Krispy Kreme, GoPro’s movement appears unlinked to any major corporate announcement or earnings news, with social media activity serving as the primary catalyst.
Retail forums and trading platforms lit up with mentions of GoPro, as users referenced its past performance and current short interest profile.
With low share prices and a recognisable brand, GoPro became one of the top tickers in speculative trading activity on Stocktwits.
Beyond Meat, 1-800-Flowers rally
Beyond Meat and 1-800-Flowers.Com also experienced double-digit percentage gains amid increased attention from retail traders.
Beyond Meat shares climbed 15.6%, with short interest standing at 38% of its free float.
1-800-Flowers.Com, which had a short interest of 71.66%, rose 14.1%.
According to Ortex, both companies are at risk of experiencing a short squeeze.
Borrow demand remains elevated, particularly for Beyond Meat, raising the likelihood that price momentum could continue if sellers are forced to cover.
The potential for these dynamics to unfold has made them prime targets for traders seeking to capitalise on volatility, despite the absence of any recent operational catalysts.
Kohl’s jump triggers retail wave
The retail-driven spike across these names follows a similar move in Kohl’s, whose shares jumped 37.6% in Tuesday’s volatile session.
Data from Vanda Research showed it was the department store’s highest daily inflow from retail investors in almost three years.
On Wednesday, Kohl’s remained volatile, trading up 1.8% and ranking as the second most mentioned ticker on Stocktwits.
Meanwhile, Opendoor Technologies, another stock that gained more than fivefold earlier in July, dipped 5.6% on Wednesday, suggesting some of the meme stock energy may be rotating into newer names.
Retail trading activity — often driven by social media platforms and facilitated by commission-free trading apps — surged during the COVID-19 lockdowns in 2021, leading to coordinated efforts to buy stocks with high short interest.
That trend, initially propelled by trades in GameStop and AMC, appears to be making a return in 2025, albeit with new targets and a fresh wave of interest.
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