Shares of Krispy Kreme skyrocketed 15.6% after FBI Director Kash Patel sparked buying interest from meme investors, who took note of his stake in the company. Patel’s comments during a Congressional hearing about government officials holding stocks alerted investors to his holdings, leading to a surge in buys.
Meme stock enthusiasts, aware that Krispy Kreme was heavily shorted with 23.1% of its float sold short, saw an opportunity for a short-squeeze. The company has faced challenges this year and skepticism is warranted, but if it can turn things around, there’s potential upside.
Krispy Kreme recently announced a turnaround plan focusing on cost-cutting and outsourcing logistics. However, the stock remains a high-risk investment due to its alignment with less popular eating trends and slow revenue growth. Patel’s endorsement alone isn’t enough to justify investing in Krispy Kreme; investors should look at the company’s underlying performance before making a decision.
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Source: https://www.fool.com/investing/2025/09/18/why-krispy-kreme-rallied-today