Why Shares of Krispy Kreme Are Surging Today

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On this current day, at 11:16 a.m. Eastern Time, the shares of the renowned donut company, Krispy Kreme, saw an increase of more than 11%. Earlier in the pre-market hours, its stock had surged by nearly 39%, and it also experienced a significant rise yesterday. It seems that meme stock investors have decided to include Krispy Kreme in their investment portfolio.

The return of meme stocks

Interests in meme stocks have undeniably resurged, as the stock market has noticeably recovered from its springtime lows. Similarly, other meme stocks such as Opendoor and Kohl’s have experienced a significant rise.

In simpler terms, Daniela Sabin Hathorn from Capital.com stated in her research note (as reported by MarketWatch) that retail trading platforms and social media are now driving market trends again. Additionally, these stocks have a high number of investors betting against them, which could lead to significant price surges when buying activity increases, a phenomenon known as a short squeeze.

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The level of short positions on Krispy Kreme shares was approximately 28%, as reported by MarketWatch. In the first quarter of 2025, Krispy Kreme announced a net loss exceeding $33 million, and their revenue dropped by around 15% compared to the same period the previous year.

Invest at your own risk

It’s important for retail investors to understand that investing in meme stocks can be extremely risky due to their lack of reliance on fundamental analysis. These stocks often surge to great heights, but eventually tend to fall over time. A warning signal is raised when a company reports increased losses alongside decreasing revenue.

It’s advisable to steer clear of Krispy Kreme, but if the allure of meme stock trading gives you a unique excitement, invest money that you won’t mind parting with in case things don’t go as planned.

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2025-07-23 18:51