Key Points
Krispy Kreme appears to have been chosen as one of the next meme stocks.
Short interest in the stock was very high not too long ago.
The company has been struggling.
Shares of iconic donut brand Krispy Kreme (NASDAQ: DNUT) 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.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
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.
Should you invest $1,000 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 10 best stocks 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 $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,023,813!*
Now, it’s worth noting Stock Advisor’s total average return is 1,034% — a market-crushing outperformance compared to 180% 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
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.