Latest news with #KrispyKreme
CNBC
2 hours ago
- Business
- CNBC
How July's meme stock surge compares to 2021 — still a long way to go
Meme stock mania has reemerged along with summer blockbusters, but some strategists and traders warn that this latest round of speculation and animal spirits is unlikely to reach its 2021 heights. Online real estate startup OpenDoor Technologies became the public face of this month's meme stock rally after hedge fund manager Eric Jackson, an investor in the stock, began hyping it on the social media platform X . Reddit-obsessed day traders have also piled into shares of well-known, household names GoPro , Kohl's and Krispy Kreme . OpenDoor has soared 332% in July, GoPro has more than doubled and Krispy Kreme is ahead 50%. The recent fervor for small cap, low-priced stocks with high short interest marks the largest resurgence in meme stocks — promoted on social media and in online communities — since 2021's GameStop mania, Bespoke Investment Group said in a note on Tuesday. "As shown below, using an index of the 100 most heavily shorted stocks Russell 1,000 stocks versus the Russell 1,000 itself, the over 52% 3-month gain in the former has outperformed the broader Russell 1,000 by over 30 percentage points. At the peak less than a week ago, that most shorted index was up closer to 60% with an over 40 [percentage point] spread versus the Russell. That is the widest spread since the 2021 meme stock mania," Bespoke wrote. But this time around, the meme stock frenzy may prove short-lived — and fail to achieve the heights of 2021. While it's hard to pin an expiration date on when the frenzy might subside, some signs indicate that the meme stock rally may already be on its last legs, said Paul Hickey, Bespoke co-founder. "Just the fact that there's been a lot of focus on it would suggest that we're probably closer to the end of it than the beginning of these stocks going crazy," Hickey told CNBC in an interview. "Once things are well-covered like this, you tend to be in the later stages than the early stages." Goldman Sachs echoed that view in a Wednesday note. "We flagged the momentum rotation and extreme rally in high beta names and lower quality pockets of the market, and we may be moving towards later innings of the short covering given the magnitude of these moves," the Goldman trading desk wrote. Bespoke also pointed out that the stocks with the highest short interest as a percentage of float — a key metric for a meme stock — were among those that performed worse during the selloff from the February highs to the early April lows. But the April bottom, these stocks have conversely delivered outsized gains. "In other words, the most heavily shorted stocks were both those that were hit the hardest during the first quarter's sell-off, and those same stocks have rallied the most off the lows. Given those outsized rallies, valuations in this pocket have gotten lofty," the firm wrote. Hickey told CNBC that this activity made sense given that market rallies tend to coincide with easier credit conditions, and the biggest beneficiaries of these easing conditions tend to be the stocks with the "shakiest fundamentals." "During market rallies like we've been having, you tend to see the lower quality stocks performing better. And some of these meme stocks tend to be the stocks that have the highest valuations and weaker fundamentals," he said. "Whereas during that period earlier in the year, from mid-February till early April, that was a weak market environment. And conversely, in weak market environments, the lower quality stocks tend to do worse."
Fast Company
3 hours ago
- Entertainment
- Fast Company
Meme stock Krispy Kreme will give away free donuts just for wearing this popular shoe—here's when and why
Donuts lovers, this one's for you! Starting in August, you'll be able to purchase limited-edition classic Crocs clogs inspired by Krispy Kreme's glazed doughnuts. The Krispy Kreme x Crocs Classic Clogs collaboration will be available for purchase on August 5, and come in a specially branded Krispy Kreme classic doughnut box. They include two interchangeable images over the toes, of chocolate and strawberry icing with sprinkles, that customers can swap out depending on their taste, and a strap around the heels with the Krispy Kreme logo. In addition, customers will also be able to purchase a five-pack of oversized Krispy Kreme Jibbitz charms—of the Original Glazed doughnut and Krispy Kreme Hot Light—to put a unique, personal stamp on their Crocs. (Those charms come seperately with two doughnuts, a dozens box, the iconic paper hat, and Krispy Kreme logo.) If all this Croc talk is making you hungry, the good news is from August 4 to August 10, while supplies last, Krispy Kreme is offering a special donut dozen, featuring the three doughnuts on the Crocs: the Original Glazed, Chocolate Iced with Sprinkles, and Strawberry Iced with Sprinkles. You can find them at participating Krispy Kreme shops, and for pickup or delivery via Krispy Kreme's app, and website. Subscribe to the Daily newsletter. Fast Company's trending stories delivered to you every day Privacy Policy | Fast Company Newsletters How to get early access to the Krispy Kreme x Crocs Classic Clogs collab Looking for early access? On August 4, anyone can order the Crocs, just visit any participating Krispy Kreme shop and scan the Crocs QR Code on display. Then, on August 9, Krispy Kreme will offer customers who come in wearing their Crocs, a free Original Glazed Doughnut. 'At Crocs, we've always believed in comfort you can customize,' Terence Reilly, Crocs, Inc. Chief Brand Officer said in statement. 'Because when it comes to self-expression, we 'doughnut' hold back.' Krispy Kreme as a new meme stock At the same time, Krispy Kreme is riding the wave of another trend: the meme stock. In short, pun intended, this is when a group of investors use social media to decide what stocks to buy, popularized by the Reddit group WallStreetBets, often at a low price in struggling companies, forcing that stock price to rise. They are often heavily shorted, according to Reuters, forcing those investors to sell to stop their losses. On Wednesday, shares in Krispy Kreme (Nasdaq: DNUT), jumped 25% in premarket trading before the opening bell, and have leveled off, as of the time of this writing, up about 6%. This comes one day after the stock rose 26%. Krispy Kreme has a market capitalization of $750.15 million, In its most recent earnings report for the first quarter of 2025, the company reported an adjusted earnings-per-share (EPS) of -$0.05, which met estimate, but fell below expectations on revenue, which fell 15.2% year-over-year to $375.18 million.
Forbes
3 hours ago
- Business
- Forbes
Meme Stock Craze Returns: These Struggling Companies Are Soaring Thanks To Retail Traders
Shares are surging for companies Krispy Kreme, GoPro, Beyond Meat and more thanks to a resurgence in the ''meme stock' craze that kicked off earlier this week with Opendoor Technologies skyrocketing, as retail investors look for quick profit among some of Wall Street's laggards. LONDON,ENGLAND - June 2023: Krispy Kreme Doughnuts store sign External Store Sign London, England. ... More (Photo by) Getty Images 'Meme stocks,' a term popularized during the Gamestop (GME) stock frenzy of 2021, are companies that attract a cult-like following that can lead to volatile swings in stocks as retail traders swiftly move to invest. More than 140 million Krispy Kreme shares had been traded as of just after 2 p.m. EDT on Wednesday—outpacing its normal volume by 26 times—after it shot up 27% on Tuesday. GoPro had 54 times its normal trading volume Wednesday afternoon, a day after the stock soared 41%. Kohl's, which rose 38% on Tuesday, placed third as the most trending ticker on Stockwits that same day, a social media platform focusing on retail investors. Krispy Kreme was up 4.1%, GoPro 8.4% and Kohl's down 15.1% on the day as of Wednesday afternoon. GoPro's recent surge has turned the stock around to put it up 40% on the year, while Krispy Kreme and Kohl's are still down year to date, despite indexes rising to all-time highs. Meme stocks are often struggling companies that gain viral popularity across social media, as many users share nostalgic memories of the brands, with the viral trends translating into often unprecedented stock price rises—and subsequent falls as investors cash in. Reddit, and more specifically the r/wallstreetbets subreddit, has historically been the focal point for buzz around meme stocks, but discourse also takes place on X and Facebook. The latest craze started in early July with the stock of Opendoor Technologies, an online real-estate, increasing 600% thanks to social media attention. Crucial Quote Danial Burnside, a financial analyst and professor at the University of Rochester, told Forbes that 'with companies like Kohl's, GoPro, Rocket — you're not investing in fundamentals, you're betting on crowd psychology and social media dynamics,' adding 'Researchers don't have good models for this.. you can't rely on any good economics to guide you here.' If someone decides to invest in a meme stock, Burnside encourages potential investors to 'keep it small.' 'No more than, say, 5% of your portfolio,' he added. 'It's speculation, not strategy. If you can't afford to lose it, you can't afford to meme it.'
Reuters
4 hours ago
- Business
- Reuters
Meme stocks pare gains with highly shorted Krispy Kreme, GoPro joining the frenzy
July 23 (Reuters) - Some investor enthusiasm faded for the latest meme stock rally on Wednesday, with shares in heavily shorted Krispy Kreme (DNUT.O), opens new tab and GoPro (GPRO.O), opens new tab coming off earlier highs, a day after retail investors had piled into the shares of department store company Kohl's. Individual investors have betting on riskier pockets of the market, including cryptocurrencies and lower priced consumer-facing stocks, as the broader equity market soars to record highs on hopes for a resilient economy and easing trade tensions. Shares of doughnut chain Krispy Kreme, whose nearly 32% of free float have been shorted, sharply pared earlier gains and were last up nearly 2% at $4.17 versus their $5.73 session high. The stock had rallied nearly 27% on Tuesday and trading volume for both days has been usually high. On Wednesday about 134 million shares had changed hands up from 44 million in the prior session. The stock was among the most active tickers on Stocktwits, a retail investor-focused social media platform. Action camera maker GoPro's shares were up about 17% at $1.61 after earlier hitting their highest level since late March 2025. Plant-based meat company Beyond Meat (BYND.O), opens new tab was up 2.75% after earlier hitting their highest level since Dec 4. The broader market environment, with strength in technology and cryptocurrency sectors, "has encouraged a risk-on mindset, emboldening retail traders to dive into speculative plays," wrote Daniela Sabin Hathorn, senior market analyst at She added that "the risks are just as stark as the rewards." "These surges are often disconnected from company fundamentals and can reverse violently. Traders who chase momentum without an exit strategy may be caught in painful drawdowns," said Sabin Hathorn nothing that meme rallies tend to be "spectacular on the way up, and just as quick to unravel." The current momentum revived memories of the Reddit-driven meme stock frenzy of 2021 when amateur investors pushed up shares of video-game retailer GameStop (GME.N), opens new tab and cinema chain AMC (AMC.N), opens new tab, burning hedge funds that were on the other side of the trade. Opendoor Technologies (OPEN.O), opens new tab, an e-commerce platform for residential real estate, was among the first stocks to join the current meme wave. But while it is still up more than 300% for the month so far, it is down more than 23% on the day at $2.20, a far cry from its July high of $4.97. Some market participants attributed the Opendoor rally to posts last week by EMJ Capital portfolio manager Eric Jackson, who said his hedge fund took a position in Opendoor and projected that it would hit $82 in the longer term. EMJ Capital did not immediately respond to a Reuters request for more details on their position in the company. Jake Dollarhide, CEO of Longbow Asset Management, said just like Ryan Cohen got the meme stock trade started in 2020 with GameStop (GME.N), opens new tab, the same scenario has played out with EMJ Capital and Opendoor. Social media platform Reddit's r/WallStreetBets, the 40th largest subreddit with 19 million members, was abuzz with screenshots of bullish bets on Opendoor and Kohl's by amateur traders. "Alright degenerates, we need to talk. OPEN ripped. KSS followed. But these cycles always come in threes, and we're missing the final piece. I think it's DNUT," a Reddit user with the handle Enodios posted on the subreddit. Kohl's (KSS.N), opens new tab surged 37.6% on Tuesday with the highest daily inflow from mom-and-pop traders in about three years, Vanda Research data showed. But on Wednesday it appeared to exemplify the fickle nature of meme stocks with a 16% decline on the day. Online gifts retailer (FLWS.O), opens new tab, with a short interest on 71.66% of its free float, was up 7.8% after rising almost 27% earlier in the day. Moves in Beyond Meat and were most susceptible to a short squeeze, Ortex said. A short squeeze occurs when investors who had sold borrowed shares in the hopes of making money from a share price decline are forced to buy shares to close their losing positions. "With both stocks moving higher in premarket, the probability of that dynamic kicking in is rising, especially for BYND, where borrow demand is already high," Ortex's Peter Hillerberg said. About a quarter of total U.S. stock market orders are attributable to retail traders, data showed. Another notable mover without news announcements this week was Pineapple Financial , last up 68% at $5.88 with 24 million shares changing hands versus the previous session's volume of less than 1 million shares. It hit a session high of $9.53 earlier on Wednesday.
Yahoo
4 hours ago
- Business
- Yahoo
Krispy Kreme Is Getting Some Meme Investor Love. How Should You Play DNUT Stock Here?
Krispy Kreme (DNUT) shares opened roughly 40% higher today as meme stock enthusiasts shifted focus from the likes of Opendoor (OPEN) and Kohl's (KSS) to the doughnut company. According to multiple sources, more than 30% of DNUT's float is currently sold short, making it a prime candidate for a short squeeze. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Dear Microsoft Stock Fans, Mark Your Calendars for July 30 Dear QuantumScape Stock Fans, Mark Your Calendars for July 23 Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. While Krispy Kreme stock has pared back some of its intraday gains in recent hours, at one point, it was seen trading well over 100% up versus its year-to-date low set in late June. Why Is It Risky to Chase the Meme Stock Rally in Krispy Kreme Stock? The meme stock frenzy in DNUT shares offered lucrative returns to investors this morning, but chasing that momentum now may prove a textbook case of trying to catch a falling knife, according to Daniela Sabin Hathorn – a analyst. 'The risks are just as stark as the rewards,' she write in a research note today, adding retail driven rallies like the one in Krispy Kreme stock on Wednesday are often 'disconnected from fundamentals' and, therefore, run the risk of reversing just as quickly. In short, Hathorn recommends accepting the ship has already sailed instead of initiating a position in the food company on the pullback – hoping another short squeeze may materialize in it in the coming days. Sinking Revenue Remains an Overhang for DNUT Shares Investors should practice caution in owning Krispy Kreme shares amid ongoing speculation also because the company's financials remain deeply challenged. In its latest reported quarter, the Charlotte-headquartered firm generated roughly $375 million in revenue, down a more-than-expected 15% on a year-over-year basis. Additionally, Krispy Kreme continued to burn cash, losing about $0.05 on a per-share basis in its fiscal Q1. Krispy Kreme Is Trading Well Below the Street's Mean Target Despite thin financials and risks related to the company's newly earned meme stock status, Wall Street analysts believe DNUT shares have significant room to the upside from current levels. While the consensus rating on Krispy Kreme stock sits at 'Hold' only, the mean target of roughly $6.33 indicates potential upside of more than 45% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
