Major meme stocks that rallied recently — Opendoor, GoPro, and Kohl’s — also gave up their gains last week.
Krispy Kreme shares fell 22% last week, giving up nearly all of the “meme stock” buzz-driven gains in the week prior. On Stocktwits, the message volume dropped 90% over the past week, suggesting that the euphoria for the struggling donut company might be waning.
Retail sentiment dropped from ‘extremely bullish’ two weeks ago to ‘bearish’ as of early Monday, and recent messages from Stocktwits users reignited concerns about a potential collapse and looming bankruptcy.
Krispy Kreme’s business has declined in recent years as budget-conscious consumers cut back on discretionary food spending amid challenging economic conditions.
Analysts have also flagged that the recent cancellation of a partnership with McDonald’s (MCD), under which Krispy Kreme menu items were available at McD outlets, is a significant concern for the business.
Consistent with Krispy Kreme, other major meme stock names that rallied in recent weeks have also lost steam.
Over the past week, GoPro (GPRO) stock declined 20.5%, Opendoor Technologies (OPEN) stock dropped by over 17%, and Kohl’s Corp (KSS) stock is down over 16%. Even the shares of American Eagle (AEO), which surged after an ad campaign featuring actress Sydney Sweeney, gave up most of their gains.
U.S. President Donald Trump announced final tariff rates on most of America’s trading partners on Thursday, which led to a steep 1.6% decline in the benchmark S&P 500 (SPX) index the following day. Over the week, the SPDR S&P 500 ETF Trust (SPY), which tracks the benchmark index, dropped 2.4%.
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