Shares of iconic donut brand Krispy Kreme (DNUT 3.75%) traded over 11% higher, as of 11:16 a.m. ET today. The stock had been up close to 39% in pre-market trading and had a big day yesterday as well. It's clear that meme stock investors have added Krispy Kreme to their list.
The return of meme stocks
While meme stocks never went away, interest has clearly been rejuvenated as the stock market has significantly rebounded from lows in April. Other meme stocks like Opendoor and Kohl's have also blasted higher.
Image source: Getty Images.
"First, retail trading forums and social platforms have once again become engines of crowd momentum," Capital.com's senior market analyst Daniela Sabin Hathorn wrote in a research note, according to MarketWatch. "Second, these stocks are all heavily shorted, setting the stage for violent short squeezes when buying pressure ramps up."
Short interest in Krispy Kreme had been as high as roughly 28%, according to MarketWatch. In the first quarter of 2025, Krispy Kreme reported a net loss of over $33 million, while revenue decline about 15% year over year.
Invest at your own risk
As many retail investors hopefully know by now, investing in meme stocks is incredibly risky, as evidenced already by today's move, because these stocks no longer trade on fundamentals. Many reach dizzying highs, but eventually come down over time. It's not a good sign to see a company reporting higher losses on declining revenue.
I would recommend staying away from Krispy Kreme, but if you find investing in meme stocks is a fun kind of thrill, only invest what you can afford to lose.
