Meme stocks are back — and Beyond Meat (BYND) is leading the charge.
After years in the shadows, the meme-stock mania of 2021 appears to have reignited. Beyond Meat, Krispy Kreme (DNUT), and GoPro (GPRO) have all seen explosive gains as retail traders pile in once again, creating wild volatility and déjà vu for investors who remember the GameStop (GME) and AMC (AMC) rallies.
Key Points
- Beyond Meat skyrockets nearly 1,200% in four days, driven by short covering and social media buzz.
- Krispy Kreme jumps over 20% on retail interest and bullish analyst sentiment.
- Meme stock revival mirrors 2021’s frenzy, with traders chasing short squeezes and high-risk momentum plays.
Beyond Meat (BYND) Soars as Retail Traders Return
Beyond Meat has become the epicenter of a new meme-stock rally. Shares of the plant-based meat maker surged as much as 1,200% in just four trading sessions, climbing from roughly fifty cents to over six dollars at their peak before cooling off.
This remarkable run came as retail traders coordinated buying across Reddit (RDDT), X, and Stocktwits, pushing Beyond Meat to the top of Yahoo Finance’s most-searched tickers list. Trading volume exploded — over two billion shares changed hands on Tuesday, the most on record, and options activity also hit new highs.
So, what’s behind the frenzy?
Two developments acted as catalysts:
- Walmart distribution deal: Beyond Meat announced that its “Beyond Burger 6-pack” and “Beyond Chicken Pieces” would be available in 2,000 Walmart stores across the U.S., renewing hopes for mainstream growth.
- ETF inclusion: The company was added to the Roundhill MEME ETF, attracting fresh speculative inflows from traders tracking the fund.
Despite this momentum, Beyond Meat’s fundamentals remain challenged. Sales fell nearly 20% year over year last quarter, and the company posted a $35 million operating loss. Its recent debt swap deal, while easing financial pressure, diluted shareholders substantially — a reminder that short-term rallies don’t always equal long-term strength.
Krispy Kreme Joins the Meme-Stock Rally
Krispy Kreme shares jumped nearly 14% in early trading, later holding gains around 10%, as retail investors turned their attention to the doughnut chain. Analysts at Morgan Stanley named DNUT a top restaurant performer, citing strong brand visibility and expanding international growth.
The company’s decision to open new stores in Madrid and its partnership with NASCAR for 2025 added further excitement. Retail data showed that traders bought $620,000 worth of DNUT shares on Tuesday — the stock’s biggest single-day buy since July.
Despite the enthusiasm, the company’s long-term performance has been mixed. Krispy Kreme is down 57% year-to-date, trading at around $4 per share, far below its 2024 high of $12.42. For investors learning the basics of investing or beginning stock trading, this highlights the volatility of momentum-driven markets.
Is This 2021 All Over Again?
Analysts say the surge in speculative trading feels like a throwback to 2021’s “hope, dreams, and memes” environment.
“Loss-making, heavily shorted, meme-able tickers — it’s the classic meme cocktail,” said one market observer.
Beyond Meat’s short interest exceeds 80%, while Krispy Kreme and GoPro hover around 15% and 13%, respectively — all ripe conditions for short squeezes.
Retail traders have poured $35 million into Beyond Meat stock this week alone, the largest one-day retail buy ever recorded for the company. Many are driven by a high-risk, high-reward mindset, betting on short-term spikes rather than fundamentals.
While such speculative activity often ends in sharp pullbacks, it demonstrates that retail enthusiasm for trading is alive and well. As one strategist noted, “There’s still capital willing to take risk — this is a trading mindset, not investment capital.”
What It Means for Investors
For long-term investors, this meme-stock surge serves as both a warning and an opportunity.
On one hand, short squeezes and retail hype can create massive price swings disconnected from company fundamentals. On the other, these rallies can temporarily boost liquidity for struggling firms — allowing them to raise capital or reset their balance sheets.
Beyond Meat, for example, may use this momentum to stabilize operations or fund new product lines. But its financial health remains fragile, with weak sales, layoffs, and ongoing losses. Similarly, Krispy Kreme’s rebound is fueled more by sentiment than sustainable profitability.
For those studying the best stocks to buy or enrolled in an option trading course, this period provides a live example of market psychology at work — where emotion and crowd behavior overpower traditional valuation models.
Conclusion
The meme-stock phenomenon has returned, led by familiar names like Beyond Meat and Krispy Kreme.
While these companies are once again in the spotlight, their long-term investment cases remain uncertain.
For traders, this is a reminder that markets can move quickly — and sometimes irrationally. For investors, it’s a chance to analyze stocks carefully, stay grounded in fundamentals, and remember that hype-driven rallies can fade as fast as they appear.
FAQs
1. Why is Beyond Meat’s stock surging?
Beyond Meat’s stock soared due to retail investor enthusiasm, short covering, and its addition to the Roundhill MEME ETF. A new Walmart distribution deal also helped boost optimism.
2. Is Krispy Kreme a meme stock now?
Yes, Krispy Kreme has become part of the current meme-stock wave after heavy retail buying and positive analyst coverage sparked short-term price jumps.
3. Are Beyond Meat’s fundamentals improving?
Not significantly. The company’s sales fell nearly 20% year-over-year, and it continues to post operating losses despite restructuring and debt reduction efforts.
4. Could this rally last?
History suggests meme-stock surges tend to be short-lived. As with 2021, these rallies often end when momentum fades and fundamentals reassert themselves.
5. What should new investors learn from this?
For stocks for beginners, the key lesson is to understand the difference between trading momentum and investing fundamentals. Speculative gains can be exciting but carry high risk.
This article is for informational purposes only and does not constitute financial advice. Always perform your own due diligence before making investment decisions.
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