Meme stocks may be back on day traders’ radars after donut chain Krispy Kreme (DNUT) soared earlier this week. However, some buyers remain unconvinced. Day traders on Reddit began encouraging each other to purchase “meme stocks” in 2020. These meme stocks mostly consisted of chains like AMC and Bed, Bath & Beyond.

Shares in a donut chain, camera company and meat-substitute maker surged Wednesday in a revival of meme stocks. Krispy Kreme, the North Carolina-based chain with about 350 shops, soared as much as 25% on Wednesday. GoPro, famous for its miniature action cameras, jumped 49% while Beyond Meat rose 11%.

"First, retail trading forums and social platforms have once again become engines of crowd momentum," she wrote. "Second, these stocks are all heavily shorted, setting the stage for violent short squeezes when buying pressure ramps up."