The latest so-called meme stocks include doughnut maker Krispy Kreme, camera maker GoPro and plant-based meat maker Beyond Meat. Each company is surging Wednesday, even though overall they have been mostly struggling to notch profits.

The trio have stepped in for department store Kohl’s and the online-based real estate company Opendoor Technologies, which are falling sharply Wednesday after surging over a number of days. It’s a sign of how quickly the hot meme stocks can fall out of favor.

Wall Street defines a meme stock as a stock that gains significant popularity and trading volume, primarily driven by social media hype and online communities, rather than the company’s fundamental financial performance. Think GameStop and Blackberry in 2021, and a few subsequent instances.

Often, meme stocks are initially the target of “short sellers,” or investors betting against the stock. If other investors start buying the shares and boost the price, that could prompt the people betting against the stock to buy more shares to cushion their own losses.

Sugar rush

Krispy Kreme rose 9% on Wednesday, adding to its 26.7% gain a day earlier. The company has seen several years of falling profits and revenue. Wall Street expects it to post a loss for 2025. During its last earnings update, the company pulled its financial forecast for the year as it reassesses its partnership with McDonald’s.

Shaky frame

GoPro jumped 35% on Wednesday to follow its 41% gain on Tuesday. The company last posted an annual profit in 2022 and revenue has been sliding for several years as it faces more competition in a market for smartphone cameras that it once dominated. Wall Street is forecasting that the company will eke out a slight profit in 2025.

“Beefy” gains

Beyond Meat gained 9% on Wednesday and is now up more than 30% for the week. The company has been struggling for years and has yet to notch an annual profit since going public in in 2019. The company warned in its latest earnings update that it is “experiencing an elevated level of uncertainty” and it pulled its financial forecasts for 2025.

Losing momentum

Investors who buy now are betting that the momentum will continue, but it can shift suddenly. .

Kohl’s, which operates 1,600 stores across the country, reversed course on Wednesday and slipped about 16%, although it is still up about 36% this week. It is wrestling with a number of challenges including a revolving door of CEOs and weak sales.

Opendoor Technologies shares also faded, falling 25% and to give back all of this week’s gains. The stock nearly tripled last week. The stock’s recent gains came as hedge fund manager Eric Jackson touted the stock on X. Opendoor faces a tough housing market, with soaring interest rates and a low supply of homes making purchases and sales difficult for both homebuyers and homeowners.

Meme stock history

The original meme stock is video game retailer GameStop. In 2021, the company was struggling to survive amid the switch from discs to digital downloads and major investors were betting against the company. Investor Keith Gill, better known as “Roaring Kitty,” rallied other investors to join him in buying up thousands of GameStop shares, changing the trajectory of the stock.

GameStop had been trading under $5 heading into 2021. The stock is trading around $24.20 on Wednesday.

The initial meme stock craze eventually fizzled out. But the frenzy occasionally reignites, as seen the past few years with sudden gains for BlackBerry, Bed, Bath & Beyond, and Chewy.

It took just four weeks in 2021 for GameStop’s stock to go from less than $5 to more than $120. But it has yet to touch that price again. Blackberry quickly jumped from less than $7 to nearly $30 in early 2021, but the gains were shaky and trimmed back within a year. It is now trading at about $4.

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AP Business Writer Anne D’Innocenzio contributed to this report.