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5 minutes ago
- Yahoo
Is Investing in "The DORKs" a Good Idea Right Now?
Key Points The DORK stocks -- Krispy Kreme, Opendoor Technologies, Rocket Companies, and Kohl's -- are getting attention. Each of these companies is losing money, but trading volume is spiking. 10 stocks we like better than Krispy Kreme › There's a new investing trend out there. Well, perhaps "newish" is the best way to put it, because to my eyes this is just a recycling of the meme stock fad that swept through the markets four years ago. That didn't end well for a lot of people, and I have similar expectations for this one. The stocks feeding into this trend are known as DORK stocks -- an acronym for the stock tickers of Krispy Kreme (NASDAQ: DNUT), Opendoor Technologies (NASDAQ: OPEN), Rocket Companies (NYSE: RKT), and Kohl's (NYSE: KSS). Just as in the meme stock boom of old, some of these companies are seeing wild changes in price and valuation for no good reason. But the trading volume is up as investors' interest is piqued. If the DORK stock name isn't enough to scare you off, then perhaps a closer look at the companies would do it. However -- and I can't stress this enough -- investing in DORK stocks seems to be a really bad idea. If you're itching to try it, here's what you should know. Hype isn't a realistic strategy First, let's take a look at the companies. Krispy Kreme makes great doughnuts, but I'm not willing to say it's a good investment today. Opendoor, which operates a digital platform that allows people to sell their houses, is linked closely to Rocket Companies, which allows people to apply for mortgages and manage their money. Kohl's is a struggling big-box clothing retailer. Krispy Kreme saw first-quarter revenue drop by 15% from a year ago, and posted a loss of $33.4 million and an earnings per share loss of $0.20. Opendoor's Q1 revenue dropped by 2%, to $1.2 billion, and the company posted a net loss of $85 million. Rocket saw its Q1 revenue drop 25% from a year ago to $1.03 billion, and posted a loss of $212 million. And Kohl's saw net sales for the first quarter drop 4.1% to $3 billion. Like other DORK names, Kohl's was in the red for the quarter, posting a loss of $15 million. So, the DORK stocks, at least today, are officially losers. But there are a few meme-type catalysts that are pushing them into the public eye, such as short interest. Rocket and Kohl's both have more than half of their outstanding shares shorted, while Opendoor has more than 30%. All of those numbers are incredibly high. When investors short a stock, they're betting that the price will go down, so there's a lot of money out there betting that these names will drop. Retail investors can lap up additional shares in hope that hedge funds that are betting against a stock will find themselves squeezed and have to sell at a higher price -- similar to the infamous short squeeze of GameStop in 2021. We're back to 2021 I know there are lots of retail investors who enjoyed the 2021 meme stock fad that included names like GameStop, AMC Entertainment, and BlackBerry. I wasn't one of them. In fact, I wrote pretty stridently against investing in meme stocks, because I see it as a sure way of losing money over the long term. When you're trading on pure momentum without a solid underlying business, you're just asking to lose your money. Some of the DORK stocks are already showing major volatility. Kohl's, which normally has a trading volume of 13 million shares, saw 209 million shares traded on July 22. The stock price jumped 120% over a two-day period, but has since lost nearly all those gains. Opendoor became hot when a hedge fund manager put a price target of $82 on the stock, which had been struggling to remain at more than $1 and avoid potentially being delisted from the Nasdaq. Now Opendoor is up 380% in the last month (although at this writing, it still trades for less than $2.50 per share). The stock saw massive trading volume of 1.8 billion shares on July 21 and 1.07 billion shares on July 23. (Its average volume is only 164.8 million shares.) Krispy Kreme's shares haven't been as volatile (probably because the short interest is comparatively low). But it still had more than 152 million shares trade hands on July 23, compared to its average trading day of 8.2 million. Rocket Companies also saw action July 22 and July 23 as more than 51 million shares changed hands each day, versus the company's average trading volume of 15.4 million shares. But the reality is that you can't time the market, and many more people lose money than win trades with meme stocks. Because short-term stock prices are a product of supply and demand, you can't predict how a stock price will move -- and if you guess wrong, you could sustain some big losses. How to invest My advice is to hold back. There are hundreds of better choices than a meme stock, and you should instead be looking for names with good fundamentals, decent profit, and a sustainable business model. But if you are determined to invest in DORK stocks, hedge your bets. Invest responsibly, with only a small part of your portfolio that you are willing to lose. You never want to overplay your hand, particularly with volatile investments -- and those include DORK stocks. Should you buy stock in Krispy Kreme right now? Before you buy stock in Krispy Kreme, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Krispy Kreme wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry and Rocket Companies. The Motley Fool has a disclosure policy. Is Investing in "The DORKs" a Good Idea Right Now? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 minutes ago
- Yahoo
1 Remarkable Stat That Highlights Just How Amazing Netflix Stock Has Been in Recent Years
Key Points Netflix is on track for another strong year where it is likely to finish up more than 20%. The company recently reported earnings, which yet again showed strong growth. 10 stocks we like better than Netflix › Netflix (NASDAQ: NFLX) recently reported another strong quarter, a testament to the company's ability to continually innovate and find ways to grow. It has been successful in making its own movies and shows, offering ads, and cracking down on password sharing -- all moves that may not have been all that convincing when they were first announced. And yet, the company continues to do well. The company's dominance in the streaming business has propelled its stock to a valuation of over $500 billion. It has been a tremendous market-beating stock, and there's one stat that highlights just how truly special and impressive Netflix has been as a long-term investment in recent years. Netflix stock is on track for at least a 20% gain for the seventh time in the past nine years As of Tuesday's close, shares of Netflix were up around 32% year to date. Unless the stock encounters some considerable headwinds later this year, odds are it will produce a return in excess of 20% yet again in 2025. And if that happens, that will be the seventh time it has done so in just nine years. The lone exceptions were in 2021 and 2022, when concerns around inflation and interest rates were weighing on growth stocks. In 2021, Netflix rose in value but by just 11% as a late-year decline sent it into a tailspin, which continued into 2022, when it fell by more than 50% that year. Aside from those blemishes, since 2017, the stock has routinely generated 20% gains or more annually. That's particularly impressive when you consider that the S&P 500's long-run average annual return is right around 10%. While the broad index has amassed returns totaling 185% since 2017, Netflix has blown past it with gains totaling more than 850%. The company continues to impress with solid earnings numbers Earlier this month, Netflix reported its latest earnings numbers, which continued to look strong. It beat analyst expectations for the second quarter (which ended on June 30), as revenue of $11.08 billion came in higher than forecasts of $11.07 billion. And its earnings per share of $7.19 came in comfortably higher than what Wall Street was looking for -- $7.08. Overall, its sales grew by 16% year over year. The company, did, however, warn that its margins will decline a bit in the latter half of the year as sales and marketing costs increase as the company releases more content. But that's a trend that has become the norm for the business in previous years and shouldn't necessarily raise alarms for investors. Should you buy Netflix stock today? Netflix has been a tremendous growth stock to own for several years now. Even with a massive decline in 2022, it has generated fantastic returns for investors who have held on. The streaming stock is undoubtedly expensive today, as it trades at 50 times trailing earnings, a steep premium. There is some risk of a correction in the near term, but with the company offering consumers a wealth of content and being a top streaming business to invest in, it's still hard not to like Netflix as a long-term investment. It may be due for a slowdown at some point, and it won't always generate 20% returns, but if you're willing to hang on, you can still generate great returns from investing in the business over the long haul. As a leader in the streaming industry, Netflix can be a good stock to buy and forget about. Should you buy stock in Netflix right now? Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Netflix wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy. 1 Remarkable Stat That Highlights Just How Amazing Netflix Stock Has Been in Recent Years was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Coca-Cola's (KO) Timeless Appeal Among the Dogs of the Dow
The Coca-Cola Company (NYSE:KO) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now. A row of factory workers assembling bottles of sparkling soft drinks on a conveyor belt. The stock has surged by nearly 12% since the start of 2025, outperforming the broader market. Investors have shown strong interest in the stock this year for a number of reasons. It's often seen as a safe choice during market downturns because of its stability, making it a popular pick when uncertainty rises. More recently, confidence in The Coca-Cola Company (NYSE:KO) has been boosted by its strong position against potential tariff impacts. In addition, the company reported strong earnings in the second quarter of 2025. Its revenue came in at $12.6 billion, up 1% from the same period last year. The revenue beat analysts' estimates by $42 million. Operating income rose by 63%, while on a comparable currency-neutral basis (non-GAAP), it saw a 15% increase. The Coca-Cola Company (NYSE:KO) also remains investors' favorite because the company has been growing its payouts for 63 consecutive years. The company pays a quarterly dividend of $0.51 per share and has a dividend yield of 2.95%, as of July 26. While we acknowledge the potential of KO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
