WSJ What’s News: Meme Stock Frenzy, Chipotle Stumbles, Toyota Rises
Release Date: July 26, 2025

Introduction

In the latest episode of WSJ What’s News, Francesca Fontana delves into the week’s most impactful market movements, driven by a combination of robust earnings reports and a resurgence in meme stock trading. The episode, released on July 26, 2025, provides listeners with a comprehensive overview of the stock market's dynamics, highlighting key players and significant shifts.

Market Performance Overview

Francesca begins by setting the stage for the week's market activities. She notes the strong performance of major indices, bolstered by positive earnings reports from various sectors.

"Verizon's earnings helped boost the S&P 500 to a new high on Monday, and the index just kept on rallying." [02:30]

By Friday, both the S&P 500 and the Nasdaq reached their 14th and 15th record closes of 2025, respectively. On a weekly basis, the Dow Jones Industrial Average rose by 1.3%, the S&P 500 by 1.5%, and the Nasdaq by 1.0%. These gains signify a resilient market amid ongoing economic uncertainties.

Meme Stock Season 2: A Resurgence

One of the standout themes of the week was the revival of meme stock trading, reminiscent of the frenzy surrounding GameStop and Bed Bath & Beyond in the previous season. Francesca emphasizes the return of retail investors rallying behind specific stocks on platforms like Reddit.

"The Redditors are so back this time around. They have dialed in on stocks like retailer Kohl's, donut chain Krispy Kreme, and online house flipper Opendoor." [04:15]

Key Meme Stocks Highlighted:

• Kohl's: Experienced a dramatic surge, more than doubling at the open and closing 38% higher on Tuesday. For the week, the stock maintained a 34% gain.

• Opendoor: Saw its shares jump by 43% on the same day, continuing its upward trajectory.

• GoPro: The camera manufacturer witnessed a 57% increase, underscoring the volatile yet lucrative nature of meme stocks.

• Krispy Kreme: Rose by 20% on Tuesday and amassed a 41% weekly gain.

Francesca explains that these stocks are attractive to meme traders because they are cheap, heavily shorted, and have significant momentum, making them prime candidates for short squeezes and rapid price movements.

Earnings Season: Triumphs and Tribulations

While the overall earnings season has been robust, not all companies have reported favorable results. Francesca discusses the diverse outcomes from the quarterly reports.

Disappointing Performances: Tesla and Chipotle

Two notable companies that fell short of investor expectations are Tesla and Chipotle Mexican Grill.

• Tesla:

  • Quarterly Revenue: Dropped by 12%.
  • Net Income: Experienced an even steeper decline.

  "Elon Musk's EV maker posted earnings late Wednesday, and its sales sure could use a jump start." [06:45]

  Following the disappointing earnings, Tesla's shares fell by 8.2% the next day and 4.1% over the week.

• Chipotle Mexican Grill:

  • Same-Store Sales: Recorded the steepest quarterly drop since the 2020 slowdown in restaurant demand.

  "On Wednesday, the company posted its steepest quarterly drop in same store sales since the 2020 slowdown in restaurant demand, and that took a sizable bite out of its share price." [07:30]

  Consequently, Chipotle's shares plummeted by 13.3% on Thursday and continued to decline throughout the week.

Francesca attributes the underperformance to tighter consumer spending and a noticeable pullback in restaurant demand, challenging the typically resilient customer base of Chipotle.

Trade Deal Boosts Toyota

Shifting focus to international trade developments, Francesca highlights a significant positive news story for the automotive sector, particularly for Toyota.

"Toyota's U.S. traded shares jumped on Tuesday's trade deal between the U.S. and Japan." [08:15]

Key Details of the Trade Deal:

• Reciprocal Tariffs: President Trump announced a reciprocal tariff rate of 15% for Japan.

• Investment Commitment: Japan agreed to invest $550 billion in the U.S. economy.

• Japan's Automotive Exports: Japan stands as the third-largest auto exporter to the U.S., following Mexico and South Korea.

The agreement alleviated some of the trade tensions between the two nations, leading to a 14% surge in Toyota's U.S. traded shares on Wednesday and a 12% weekly gain. This development underscores the significant impact that international trade policies can have on individual stocks and sectors.

Conclusion and Further Reading

Francesca concludes the episode by directing listeners to the Wall Street Journal's Exchange section for more detailed analyses of the week's stock movements. She emphasizes the importance of staying informed through reliable sources to navigate the ever-evolving financial landscape.

"You can read about more stocks that moved on the week's news in the Score, my column in the Wall Street Journal's Exchange section." [09:00]

Produced by Zoe Culkin with supervising producer Talia, the episode offers a nuanced examination of market trends, investor behavior, and the interplay between corporate earnings and broader economic policies.

Stay Informed: To keep abreast of the latest developments in the markets, subscribe to WSJ What’s News and visit wsj.com/exchange for comprehensive coverage and expert insights.