Shares of doughnut behemoth Krispy Kreme Inc. ( DNUT )  surged 38.49% to $5.72 in Wednesday pre-market trading. The surge in the company's stock price, despite no major news, points to a renewed wave of meme stock trading.

What Happened: Krispy Kreme’s stock closed at $4.13 on Tuesday and further ascended by 24.69% in after-hours trading. The stock’s sudden rise appears to be driven by retail investors, with the company gaining increased attention on various social media platforms.

Interestingly, Krispy Kreme and Crocs Inc. ( CROX ) teased a mysterious collaboration with an Instagram reel showing a Croc on a donut conveyor belt, reported Forbes.

The video, labeled "Spicy Content,” and a caption "We're cooking up something that fits just right. Where comfort meets crave." The reel ends with minimal details but plenty of buzz. Both brands shared the cryptic clip, leaving fans curious.

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Why It Matters: The spotlight on heavily shorted stocks has intensified recently, following a surge in Opendoor Technologies Inc. ( OPEN ) . This has reignited interest in meme stocks, with original meme stocks like GameStop ( GME ) and AMC Entertainment ( AMC ) also experiencing increased activity.

The stock saw an exceptionally high trading volume, with over 37 million shares changing hands—far above the 100-day average of around 4.68 million. This heightened activity is likely driven by elevated short interest, as 26.35% of the float is currently sold short, making it an attractive play for momentum traders.

In June, Krispy Kreme ended its partnership with McDonald’s Corp. . The termination of this partnership was due to concerns about profitability.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.