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Stocks can pop at a moment’s notice if the right person says the right thing at the right time. For example, in his testimony before Congress yesterday, FBI Director Kash Patel was answering questions about buying stocks while in office—specifically Krispy Kreme and ON Semiconductor.
“I just follow certain industries, and I thought they would be a good investment,” Patel said.
While ON Semi barely budged, Krispy Kreme soared 11.5% as soon as the words left Patel’s mouth—only for the donut purveyor to come tumbling back to earth and finish the day up just 0.96%.
The company was a member of the DORK stocks, the latest batch of meme stocks to catch retail traders’ attention this year, and jumped 27% at one point in July. While the stock has given up nearly all of those gains since, apparently it still has a little meme juice left in the tank, with retail investors all too happy to take Patel at his word and buy shares.
Whether or not Krispy Kreme really is a “good investment” is up for some debate, however. Of the eight Wall Street analysts who cover the stock, five have a “hold” rating on the company, as they wait to see the fallout from Krispy Kreme’s failed partnership with McDonald’s and whether or not the company can turn its struggling business around.—MR