The Rundown Deep Dive: Could ChatGPT Cause the Next Meme Stock Rally?
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Jul 27, 2025 The latest surge in meme stocks seems to be fueled by AI influence, with companies like Opendoor and Krispy Kreme experiencing unexpected spikes. The discussion highlights how AI models may sway retail investors, reigniting the meme stock phenomenon. Moreover, major banks are raising alarms about the potential risk of overcrowded markets, warning of the implications of 'funny money' investing. This wave could redefine investment landscapes, hanging in the balance between humor and financial peril.
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Recent Meme Stock Rally Example
- The 2023 meme stock rally started with Opendoor, which surged over 300% in six trading sessions despite poor fundamentals.
- Other heavily shorted stocks like Krispy Kreme, GoPro, and Kohl's followed the trend briefly before falling back down.
AI's Role in Meme Stocks
- Unlike 2021, the current meme stock surge lacks leadership, mission, and solidarity, driven instead by quick trading moves.
- AI, including ChatGPT, influenced the rally by recommending heavily shorted stocks like Opendoor to many retail investors.
AI-Inspired Stock Picks Story
- Hedge fund manager Eric Jackson credited his AI model for advising a position in Opendoor, sparking a six-day rally.
- Retail investors also reported getting Opendoor buy recommendations from ChatGPT, activating social media traction.