Meme-stock fever cools as heavily shorted Krispy Kreme and GoPro fade, while Kohl’s spiked on retail buying. DNUT soared to $5.73, settling near $4, and GPRO hit its best level since March. Retail traders rotate into cheap, consumer-facing names and crypto plays, with Opendoor falling over 20%. Social catalysts dictate entry/exit timing more than earnings, with GMV-style trading volumes seen in DNUT and GPRO. Short squeeze mechanics remain intact, with high borrow costs setting the stage for rapid price pops. Discipline trumps dopamine for investors in meme swings, as social catalysts drive price moves more than earnings potential.

Read more at QuiverQuant: Meme Stocks’ Third Act Tests Retail’s Risk Appetite