Retail traders push small caps higher despite shaky fundamentals
A fresh wave of meme stock mania swept through markets on Wednesday, propelling GoPro (GPRO) and Krispy Kreme (DNUT) into the spotlight. Shares of GoPro surged as much as 90% in premarket trading before settling around a 40% gain shortly after the open, while Krispy Kreme jumped as high as 70% premarket before cooling to a 26% rise. The moves follow earlier rallies this week in Opendoor (OPEN) and Kohl’s (KSS), signaling renewed enthusiasm among retail investors for heavily shorted or beaten-down names.
GoPro, once a high-flying tech darling trading near $100 following its 2014 IPO, has seen its value plummet by 98% over the past decade. The company is now struggling with falling revenues, posting $134.3 million in Q1 2025—down 13% year over year. Even its historically strong Q4 showed weakness, with sales dropping to $200.8 million in 2024 from $295.4 million a year earlier.
Krispy Kreme’s share price has also seen a decline since its pandemic-era highs, though less severe than GoPro’s. The doughnut maker recently reported a 15% year-over-year drop in Q1 revenue, falling to $375.2 million in 2025.
While the retail trading crowd has reignited interest in small-cap names, the meme stock rally hasn’t been uniform. GoPro’s short interest stands at under 10%, far below the short float of roughly 28% for Krispy Kreme and 49% for Kohl’s—suggesting other dynamics may be at play beyond short squeezes.
Both GoPro and Krispy Kreme are scheduled to report earnings in August, which could determine whether this latest surge has staying power—or is simply another chapter in the speculative saga of meme stocks.
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