Krispy Kreme (DNUT) shares surged 40% as meme stock interest shifted to the doughnut company. Over 30% of DNUT’s float is sold short, opening potential for short squeeze. Stock traded well over 100% above year-to-date low.

Analysts caution against chasing DNUT’s momentum, warning of risks and disconnect from fundamentals. Advised to avoid initiating positions in hopes of another short squeeze. Financials show challenges, with revenue down 15% year-over-year, and cash burn in fiscal Q1.

Despite financial challenges and meme stock status, analysts see upside potential for DNUT shares. Consensus rating is “Hold,” with mean target suggesting over 45% upside. Investors should exercise caution due to speculation and financial constraints.

Read more at Yahoo Finance: Krispy Kreme Is Getting Some Meme Investor Love. How Should You Play DNUT Stock Here?