Doughnut Delirium: FBI Director's Stock Pick Sparks Brief Krispy Kreme Frenzy
FBI Director Kash Patel spurred a fierce but fleeting rally in Krispy Kreme shares (DNUT) on Wednesday after he said the stock was a solid investment.
The comment came during Patel’s testimony before the House Judiciary Committee on Wednesday. Colorado Rep. Joe Neguse asked Patel about his decision to purchase individual stocks — including Krispy Kreme and semiconductor company ON Semiconductor (ON) — and the FBI director said he thought they were good buys.
“Generally speaking, before I got this job, I was trading stocks, but not a lot like most people,” said Patel, who started his post in February.
“I just follow certain industries, and I thought they would be a good investment,” he added.
Stock traders were apparently listening: Krispy Kreme shares jumped as much as 11.5% after his comments. The rally was brief, and shares ended the day higher by just 0.96%, erasing nearly all the earlier gains.
The rise after Patel’s remarks is emblematic of the mania gripping markets this year. Traders are driving rallies in specific stocks not based on fundamentals but on hype and a sense of virality.
Shares in the North Carolina-founded doughnut chain are down 68% this year, but they had gained this summer as part of the so-called meme stock craze. The second best day on record for Krispy Kreme shares happened July 22 — when the stock soared 26.7% in one day — before the rally fizzled out.
Yahoo ist Teil der Yahoo-Markenfamilie.