Krispy Kreme Stock Surges 38%: Meme Stock Trading Revived

Krispy Kreme's stock surged 38.49% in pre-market trading, with no major news driving the increase. The stock's rise is attributed to meme stock trading, with increased attention on social media platforms. The company recently ended its partnership with McDonald's and has a high short interest, making it an attractive play for momentum traders. The stock's trading volume was exceptionally high, with over 37 million shares changing hands, far above the 100-day average.

Krispy Kreme's stock (DNUT.O) surged by 38.49% in pre-market trading on July 2, 2025, despite the absence of any major news events. The significant increase in the stock's price is attributed to the ongoing meme stock trading phenomenon, which has gained traction on social media platforms. The stock's rise is particularly notable given that Krispy Kreme recently ended its partnership with McDonald's and has a high short interest, making it an attractive play for momentum traders.

The trading volume for Krispy Kreme's stock was exceptionally high on July 2, with over 37 million shares changing hands. This volume is significantly above the 100-day average, indicating a high level of interest and activity among investors. The increased trading volume is likely a result of the social media buzz surrounding the stock, with users on platforms like Reddit, Twitter, and Stocktwits discussing the potential for a short squeeze and speculating on the stock's future price movements [4].

Krispy Kreme's stock has been a popular target for retail investors and social media influencers, who have been driving the meme stock rally. The stock's ticker symbol, "DNUT," is simple, catchy, and easily memeable, making it an attractive choice for investors looking to capitalize on the trend. The company's recent financial struggles, including declining sales and the end of its partnership with McDonald's, have not deterred investors from targeting the stock for potential gains [2].

The meme stock phenomenon has been characterized by the rapid and volatile price movements of heavily shorted stocks, often driven by coordinated buying efforts by retail investors. Krispy Kreme's high short interest, with approximately 32.2% of its free float shorted, makes it susceptible to a short squeeze, where investors who had sold borrowed shares are forced to buy back shares to close their positions, driving the stock price up further [1].

The ongoing meme stock rally has had a significant impact on the broader market, with other heavily shorted stocks like GoPro (GPRO.O) and Beyond Meat (BYND.O) also experiencing substantial price increases. The rally has been fueled by the growing interest in heavily shorted stocks, with retail investors looking to capitalize on the potential for significant price gains [1].

In conclusion, Krispy Kreme's stock surge is a reflection of the ongoing meme stock trading phenomenon, driven by increased attention on social media platforms and the potential for a short squeeze. The stock's high trading volume and short interest make it an attractive play for momentum traders, despite the company's recent financial struggles. As the meme stock rally continues, investors should be mindful of the risks and volatility associated with heavily shorted stocks.

References:
[1] Reuters. (July 23, 2025). Highly-shorted Krispy Kreme, GoPro, jump as meme stock rally continues. Retrieved from https://www.reuters.com/business/retail-consumer/highly-shorted-krispy-kreme-gopro-jump-meme-stock-rally-continues-2025-07-23/
[2] Sherwood News. (July 23, 2025). Shares of Krispy Kreme surge in investor sugar rush: latest meme stock. Retrieved from https://sherwood.news/markets/shares-of-krispy-kreme-surge-investor-sugar-rush-latest-meme-stock/
[3] Yahoo Finance. (July 23, 2025). Krispy Kreme, GoPro soar as the next darlings of this summer's meme stock resurgence. Retrieved from https://finance.yahoo.com/news/krispy-kreme-gopro-both-soar-as-the-next-darlings-of-this-summers-meme-stock-resurgence-125133460.html
[4] Stocktwits. (July 23, 2025). After Opendoor and Kohl's rally, Krispy Kreme rides meme stock sugar high. Retrieved from https://stocktwits.com/news-articles/markets/equity/after-opendoor-and-kohl-s-rally-krispy-kreme-rides-meme-stock-sugar-high/ch8wgisR5t6