A new meme stock rally has emerged, potentially surpassing the 2021 craze in scale, according to WallStreetBets founder Jaime Rogozinski. Struggling retailers and consumer brands, such as Kohl’s (KSS), GoPro (GPRO), and Krispy Kreme (DNUT) surged last week, apparently driven by retail investors mobilizing online. American Eagle (AEO) stock jumped 10% after announcing Sydney Sweeney as a brand ambassador, exemplifying how celebrity endorsements now drive trading.
Meme stock traders often disregard fundamentals, instead supporting brands based on emotional or ideological reasons. For example, Trump Media (DJT) is valued at $4 billion yet generates just $1 million in quarterly revenue.
