Krispy Kreme Stock Soars as Meme Traders Fuel New Retail Rally

Krispy Kreme stock has joined a new wave of meme-stock mania this week, rallying sharply on the back of speculative retail enthusiasm rather than financial fundamentals. The doughnut maker saw its shares skyrocket over 34% in premarket trading on Wednesday, continuing the momentum from a 27% gain the day before.

Krispy Kreme’s Meme Stock Moment

Retail traders—especially from Reddit’s WallStreetBets forum—have turned their attention to Krispy Kreme (ticker: DNUT), pushing the stock into the spotlight. The company’s shares, which had previously slumped more than 58% this year, surged to their highest level since April 2, 2025.

What’s behind the spike? Analysts say it’s not news or earnings. It’s meme stock psychology. According to Daniela Sabin Hathorn, a senior analyst at Capital.com, this is a classic case of momentum-driven trading. “Krispy Kreme seems to be the latest addition to the frenzy…driven more by investor enthusiasm and positioning than corporate performance,” she said in a note.

The Power of the Crowd

Krispy Kreme isn’t alone. Other names caught in this speculative trend include GoPro (GPRO), Kohl’s (KSS), and the now-fading Opendoor (OPEN). GoPro surged over 48% Wednesday morning, while Opendoor plunged more than 16%—a sign that meme stocks often rotate quickly based on online buzz.

WallStreetBets users have flooded the forum with posts like “YOLO DNUT,” using high-risk language to describe their all-in bets. These traders are known for triggering short squeezes—rapid stock price jumps caused by heavily shorted stocks rising sharply and forcing sellers to buy back in.

Why It’s Happening Now

Several market conditions are fueling this rally:

• High short interest: Krispy Kreme has about 28% of its float sold short, creating a ripe setup for a squeeze.
• Tech and crypto gains: A bullish environment has emboldened traders to take more risks.
• Better-than-expected economic signals: Fears about tariffs and the economy eased this week, boosting overall sentiment.

Bitcoin’s recent peak above $123,000 and the S&P 500’s record-setting performance have added fuel to the speculative fire.

Risks Remain High

Despite the hype, analysts warn that meme stock trading is volatile and unpredictable. “These surges are often disconnected from company fundamentals and can reverse violently,” Hathorn cautioned. Traders without an exit strategy could face steep losses if momentum fades.

In 2021, AMC and GameStop taught retail investors just how fast gains can vanish. Whether Krispy Kreme’s rally will be short-lived or the start of something bigger remains to be seen.

Do you think Krispy Kreme’s stock surge is the beginning of a comeback or just another meme-stock mirage?

More…

• https://www.cnbc.com/2025/07/23/gopro-krispy-kreme-join-the-meme-party-as-wall-street-speculation-ramps-up-.html
• https://www.marketwatch.com/story/krispy-kreme-joins-the-meme-stock-party-tech-and-crypto-strength-may-be-fueling-the-wave-analyst-says-f247d712
• https://www.bloomberg.com/news/articles/2025-07-23/dnut-krispy-kreme-gopro-gpro-shares-surge-with-markets-abuzz-about-meme-stocks