Steve Quirk, Robinhood chief brokerage officer, joins 'Squawk Box' to discuss the resurgence in meme stocks, meme stock trading trends, and more.

Bursts of euphoric trading are often bullish for near-term returns, but rapid surges in speculation also raise the risk of a pullback, Goldman said.

Retail investors are once again banding together to bet on highly shorted loss-making companies such as Kohl's and Krispy Kreme this week, bringing to mind the "meme stock" frenzy that gripped Wall Street four years ago.

More than a third of Hims & Hers public float — over 65 million shares, or about 33.5% — are being sold short, according to data from Benzinga Pro . This level of short interest is well above average and makes Hims & Hers a ripe target for a short squeeze, a scenario highly attractive to retail traders who coordinate on social media.

Retail investors have begun to pile into speculative bets on small-cap companies in a buildup that resembles the meme stock frenzy of 2021.

Krispy Kreme and action camera company GoPro have joined the meme stock rally as their shares surge. Like the shares of Opendoor and Kohl’s, both Krispy Kreme and GoPro were heavily cited by users of the wallstreetbets subreddit. The meme stock rally is back and gathering steam.

Huge interest in the Menomonee Falls-based retailer's stock drove so many trades July 22 that trading was briefly suspended. The rally came after online forums talked up shares in the retailer, which has suffered from sales slumps and corporate leadership turnover.

The ticker $OPEN has been heavily cited on WallStreetBets, the online forum behind the infamous GameStop mania in 2021.