Financial exchanges or commerce transactions involving various assets, goods, or services, often facilitated through stock markets, commodity markets, forex markets, or cryptocurrency exchanges.
Traders are continuing to make significant gains in the ongoing meme-stock rally, with a variety of companies, including Krispy Kreme, GoPro, Opendoor, and Kohl's, joining the fray.
The meme-stock rally is not limited to these companies, as retail investors on platforms like Reddit and Stocktwits continue to drive price surges in a wide range of stocks. The phenomenon is characterised by sharp short squeezes, where heavily shorted stocks experience rapid price increases as short sellers rush to cover their positions, further accelerating the rally.
Reddit traders are using a number of strategies to capitalise on these rallies, including coordinated buying to trigger short squeezes, targeting beaten-down or heavily shorted companies, utilising social media and community forums for rapid dissemination of trade ideas, and opting for "catch up plays" to seek stocks that may outperform outside dominant sectors.
The meme-stock rally has created a high level of excitement among traders, with some boasting about significant gains, up to $45,000, in a short period of time (about an hour). This retail trading activity coincides with high market optimism, reflected in record highs in indices such as the S&P 500 and the NASDAQ.
However, the meme-stock rally also creates risks of volatility and potential steep downturns when momentum fades. In response to these rallies, Opendoor recently postponed a shareholder vote on a reverse stock split, a move likely influenced by the stock price boosting effects of meme-driven buying, which temporarily reduces delisting risks.
The meme-stock resurgence in mid-2025 shows retail traders leveraging social media-driven momentum and short squeeze dynamics to exploit sudden, often unexpected, price surges in select companies beyond the initial core of meme stocks.
Article published on Thursday, July 24, 2025, at 02:51.
References:
- The Wall Street Journal
- CNBC
- Bloomberg
- MarketWatch
- Yahoo Finance
In the meme-stock rally, retail traders are not confined to particular businesses as they seek investment opportunities across various sectors, such as finance, trading, and businesses like Krispy Kreme, GoPro, Opendoor, and Kohl's. As these rallies continue, they also provoke risks of volatility, with the potential for steep downturns when momentum wanes, as seen in the delayed shareholder vote on a reverse stock split by Opendoor.
