Meme Stock Rally Surges Across US Retail Market

In 2025, meme stocks such as Opendoor Technologies, Kohl's, and Krispy Kreme have experienced significant surges, with Opendoor rising more than 370% in July due to social media-driven retail investor interest despite weak fundamentals and sluggish U.S. home sales. This resurgence of retail-driven rallies, fueled by platforms like Reddit's WallStreetBets and TikTok, is marked by coordinated buying and AI-powered tools that amplify sentiment, differing from the 2021 GameStop frenzy by being more systemic and sentiment-driven. However, the sustainability of these rallies is highly uncertain as they depend on liquidity and social media momentum, which are inherently unstable, leading to volatile price swings and risks of sharp corrections. Analysts warn that these rallies often peak when liquidity dries up, trapping investors amid herd mentality and fear of missing out (FOMO). While some experts caution that current meme mania may signal an approaching market peak or correction, others note that the broader market is resilient, with the S&P 500 reaching record highs and speculative activity remaining relatively controlled for now. Overall, the 2025 meme stock phenomenon highlights the growing influence of retail investors leveraging social media and algorithmic tools to impact market dynamics, raising questions about long-term investor strategy and market stability.