Forget AMC: GoPro (GPRO) is the Newest Meme Stock Traders Are Flocking Into

2025 has been quite volatile for investors. Amidst tariff concerns and market volatility, there has been a rise in meme stocks, sparked by two stocks in the past week. A meme stock gains popularity and a high trading volume, driven by strong social media interest. Instead of focusing on the company’s fundamentals, investors pile into momentum stocks driven by short squeeze interest. With more buying pressure, short sellers are forced to cover their positions, and they benefit to a significant degree, making big gains.

Two original meme stocks, AMC Entertainment Holdings Inc. (NYSE: AMC) and GameStop Corp. (NYSE: GME), led the meme mania in 2021. Back then, AMC was struggling to survive, and the “Roaring Kitty” mania took it by storm. The stock went from $15 to the highs of over $260, and the company was quick to capitalize on this rally by raising $250 million through the sale of shares.

This week, there are more stocks that traders are betting on.

Camera maker GoPro (NASDAQ: GPRO) is the latest meme stock. The stock is up 73% in a month and 86% in five days.

Driven by the meme craze, GoPro soared 60% on July 23, to follow the 41% gains made on July 22, reaching the highest level since November 2024. It soared to $1.54, its highest level since January. GPRO is very close to the 52-week high of $2.37. Overall, the stock is down 69% in five years.

The company has been struggling to report a profit and last reported an annual profit in 2022. The revenue has been down for several years due to rising competition in the industry. Its annual revenue has been on a downward trend and is expected to continue this year.

The reason behind it is the one-product company. However, the management is aiming to enhance the business by adding new products and reducing costs. While Wall Street is optimistic about its future, there’s a lot GoPro needs to work on if it wants to gain a larger market share.

GoPro shares have become overbought with the RSI moving towards the overbought point. This means there could be a pullback very soon. Besides GoPro, Krispy Kreme (Nasdaq: DNUT) and Beyond Meat Inc. (NASDAQ: BYND) are also surging. The reason behind the surge is speculative retail demand and short selling.

Such surges are often disconnected from fundamentals, and once the frenzy dies, the stock often drops. Meme stocks are only suitable for investors who have space for some losses. For others, it might go down well. The consensus rating on GoPro is a strong sell.