TLDR
- Beyond Meat stock surged over 900% in five days after a Walmart distribution deal and addition to the MEME ETF, though shares gave back most gains by afternoon
- Krispy Kreme shares jumped more than 20% Wednesday morning, trading 65% above its 2025 intraday lows from June
- Retail traders purchased nearly $35 million in Beyond Meat stock on Tuesday, marking the company’s largest single-day purchase ever
- Both stocks have high short interest, with Beyond Meat at 64% and Krispy Kreme at 30%, creating conditions for potential short squeezes
- The Roundhill MEME ETF relaunched in early October after shutting down in 2023, adding Beyond Meat on Monday
Beyond Meat and Krispy Kreme became the latest targets of meme stock traders on Wednesday. The plant-based meat company and donut chain saw dramatic price swings during morning trading.
Beyond Meat opened Wednesday with gains exceeding 95% before losing most of those increases by afternoon. The stock traded as high as $7.69, its highest level since August 2024. By afternoon, shares had fallen back to $3.90.
The five-day rally pushed Beyond Meat up more than 900% from its Thursday closing price of 52 cents. That price represented the stock’s lowest point of 2025. The rapid increase caught the attention of retail investors who poured money into the stock.
Retail traders bought almost $35 million in Beyond Meat shares on Tuesday alone. Vanda Research data shows this marked the biggest single-day purchase in the company’s history. The buying frenzy followed two company announcements.
On Monday, Roundhill Investments added Beyond Meat to its relaunched MEME ETF. The fund had previously shut down in 2023. Beyond Meat also announced a distribution deal with Walmart earlier in the week.
Krispy Kreme shares rose more than 20% during Wednesday morning trading. The donut maker has climbed 65% from its 2025 low of $2.50 set in June. The stock remains well below its historical highs but has recovered from a 75% year-to-date decline.
Short Interest Drives Trading
Short interest played a major role in the price movements. Beyond Meat carried a short float above 64% as of Wednesday morning, according to FINVIZ data. This means more than half of the company’s available shares were being used to bet against the stock.
Krispy Kreme had 30% short interest while GoPro stood at 13%. High short interest can trigger short squeezes. These occur when investors betting against a stock are forced to buy shares to limit their losses.
Matt Stucky, chief equities portfolio manager at Northwestern Mutual Wealth Management, compared the trading to 2021 patterns. He described it as a “hope, dreams, themes, and memes kind of environment.” That year saw GameStop and AMC become household names among retail investors.
Market Analysts Issue Warnings
JPMorgan analysts had identified both Beyond Meat and Krispy Kreme as short candidates earlier in October. They cited “eroding market share in a declining category” for Beyond Meat. For Krispy Kreme, analysts pointed to an “overburdened balance sheet.”
Stucky warned about the speculative nature of current trading. He noted these companies lack positive earnings and some are losing money. The portfolio manager called these moves “speculative kind of risk that’s starting to build up in markets.”
GoPro joined the rally with gains exceeding 14% Wednesday morning. The action camera maker benefited from similar retail trader interest. Opendoor Technologies, another popular meme stock in 2025, fell more than 8% despite being up nearly 300% year-to-date.
The MEME ETF itself has struggled since its October relaunch. The fund dropped more than 17% in recent days and lost 5% on Wednesday. Other holdings in the ETF include Opendoor and Plug Power.
Krispy Kreme announced expanded overseas plans while Beyond Meat’s Walmart deal increased its retail presence. Both companies have widely recognized brand names, a common trait among meme stocks. Beyond Meat stock last traded near $3.14, down over 12% from Wednesday’s highs.
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