Meme stocks are melting as investors look towards Big Tech
The meme stock FOMO is taking a breather.
According to a new report from Vanda Research, investor appetite for meme stocks like Kohl’s (KSS), Krispy Kreme (DNUT), and GoPro (GPRO) has dropped sharply as traders shift their attention to Big Tech earnings and broader market drivers.
“Just like that, the meme stock frenzy of July 2025 has seemingly fizzled out,” Vanda’s Marco Iachini wrote. Across a basket of popular meme names, average daily turnover plunged as much as 90% in recent weeks. The lone exception is the fintech SoFi (SOFI), which saw a recent jump in trading tied to its common stock offering.
The cool-down in retail-driven trades comes as major companies like Meta (META), Microsoft (MSFT), and Apple (APPL) deliver earnings that could set the tone for the broader market. Thus far, Meta and Microsoft have reported robust quarterly earnings, powered in part by their AI efforts.
“It’s not surprising to see retail activity take a breather,” Iachini noted. With Big Tech earnings underway and a Federal Reserve meeting now in the rearview mirror, retail investors are reallocating toward more established players rather than high-risk names. While meme stock flows made headlines, they didn’t ignite the kind of broad-based retail frenzy seen during the GME episode in 2021, he added.
Over the past month, Kohl’s is down 88%, while Krispy Kreme has shed roughly 84%. Other one-time favorites like Opendoor Technologies (OPEN) and SharpLink Gaming (SBET) have also lost steam.
Meanwhile, institutional investors are playing a bigger role in driving the marker. Since April, the rally has largely been fueled by retail and systematic flows. But for stocks to keep climbing through the second half of the year, "discretionally institutional investors may need to play a larger role,” per Iachini.
Still, retail traders haven’t disappeared — they’ve just become more selective. Shares of Kohl’s spiked 2,589% in trading volume the week of July 21, after it became the target of a meme-stock trading frenzy fueled by users on Reddit's WallStreetBets.
Krispy Kreme saw an even steeper 4,371% surge during that period, powered by similar circumstances, despite weak first quarterly earnings results and ending a partnership with McDonald’s (MCD). GoPro (GPRO), which has emerged as a favorite among speculative traders, didn’t miss out on the action. Its trading volume ballooned 2,727% that same week.
But the recent meme stock pop hasn’t come close to its 2021 peak. This brief shift towards riskier assets, sparked by hopes for rate cuts, easing inflation, and a soft landing, now appears to be under reconsideration.
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