Shares in retailers like Kohl’s, GoPro, Wendy’s, and Krispy Kreme surged this week, driven by rapid trading volume reminiscent of the 2021 meme-stock craze. The latest rally is fueled by amateur traders casting aside Wall Street skepticism and mobilizing online.
Jaime Rogozinski, founder of the Reddit forum wallstreetbets, says retail traders are redefining what matters in finance with blockchain technologies and AI agents. “The world of finance is changing,” he said. “Retail traders are adapting along with it.”
Noor Al, a moderator on wallstreetbets, agrees that great ideas can now come from anyone, anywhere. “We’re seeing the power of retail push stocks to the tune of billions of dollars through the power of ideas and community.”
The meme-stock craze often ignores economic fundamentals, as investors support brands for romantic or ideological reasons. Wendy’s, a hamburger chain, was valued at over $5 billion despite quarterly revenue of just $1 million.
Rogozinski points out that retail traders are not concerned with traditional market factors like tariffs and war in the Middle East. “It’s this ability to almost make fun of the financial system,” he said.
Long-term institutional players will eventually regain control, but for now, volatility offers a lucrative opportunity. Rogozinski says the financial system needs a facelift in relevancy.
With record-highs and a robust economy making meme stocks attractive once again, retail traders are optimistic about speculation and excitement. Days traders prioritize brands over financial performance, saying they care more about products and companies than traditional market metrics.
The rise of retail traders has introduced a “third component” to investment: emotional support for specific companies. Rogozinski says this approach is changing the way investors participate in the markets.
Source: https://www.theguardian.com/business/2025/jul/26/meme-stock-craze