Krispy Kreme Soars 11.5% After FBI Director's Glazing

Turns out cops really do like donuts…

Where do you think this story starts? Where do you think the most likely place for a discussion on Krispy Kreme (pronounced ‘crispy creams’) donuts is? If you guessed “during a House Judiciary Committee meeting on the Epstein files,” congratulations, 11.5 points to you.

For some reason, FBI Director Kash Patel was asked during his testimony on Epstein about buying individual stocks like ON Semiconductor (ON) and Krispy Kreme (DNUT) (no, really).

Patel explained that, “Generally speaking, before I got this job, I was trading stocks, but not a lot like most people. I just follow certain industries, and I thought they would be a good investment.”

Translation: “Me likey donuts.”

Krispy Kreme economics — ‘Donut Economics’ explained… wait, this has nothing to do with what we’re talking about, where did you find this graphic?

Kash’s Krispy Kreme glazing was enough for the donut shop stocks to soar 11.5%. Turns out, though, just like a donut, this was a hollow rally. The end of the day erased all gains, leaving the index just 0.96% higher than before. So yeah, probably not a big insider trading conspiracy.

This isn’t the first rally this year for the North-Carolinian company. In July shares got an extra filling of 26.7% seemingly from a meme-stock rally. Overall however, shares are down 68% this year, so never mind.

But for Kash this has been a savvy investment. He put in between $15,000 to $50,000 into the company in May and since then stocks have climbed 15%.

Nice one, Kash.

‘Krispy Kreme’? More like ‘Krispy Insider Trading’

Similarly his $50,000-$100,000 in ON have gone up 12%. Shit, this guy’s in the wrong career and not just because he’s a bad FBI director.

This Krispy bump is just another example of this current era of meme stocks and hype ruling the markets. As Steve Sosnick, from Interactive Brokers explains: “It’s emblematic of the approach that a lot of speculators have to the market and how they will jump on any piece of positive-sounding news and how that can create self-fulfilling rallies, at least in the short term.”

“The reaction just shows you the level of froth in the market… the rally basically faded almost as quickly as it started, because it was based really on not much… There’s a difference between investing and just sort of chasing stories, and this falls into the latter.”

So let that be a lesson to you.

For more stock news, read this one: After Failure Of ‘Up’ And ‘Down’, Trump To Trial Secret ‘Third Direction’ For Markets