Latest news with #speculators
Yahoo
14 hours ago
- Business
- Yahoo
Is Krispy Kreme an Underrated Buy or Just the Latest Meme Stock?
Key Points Krispy Kreme's stock has skyrocketed in the past month, without any clear catalyst. The company recently announced an end to its partnership with McDonald's. Its growth rate has been declining in recent periods, and it has struggled with profitability. 10 stocks we like better than Krispy Kreme › Shares of Krispy Kreme (NASDAQ: DNUT) have been on fire recently, rising more than 50% in the past month (as of July 28). The company doesn't report earnings until next week, but the lack of a catalyst hasn't stopped it from becoming one of the hottest buys on the market of late. Are investors buying the stock because it's a bargain buy that's been overlooked and has a lot of potential upside, or is Krispy Kreme just the newest meme stock for speculators to bet on? Krispy Kreme stock is rallying at an odd time What's particularly perplexing about Krispy Kreme's recent run up in value is that it has happened amid some bad news for the business. In late June, the company announced that its partnership with fast food giant McDonald's was coming to an end. Krispy Kreme's donuts have been available at 2,400 McDonald's restaurants. However, it hasn't proven to be a profitable venture for Krispy Kreme, as the companies say they "jointly decided" to end their partnership as of July 2. An end to a partnership with the most popular fast food restaurant in the world may seem like it should have been bad news for Krispy Kreme stock, but the news didn't derail it. The day that announcement came out -- June 24 -- the stock closed at $2.60, and despite the bad news, it has soared by well over 50% since then. Krispy Kreme's financials don't look good The big concern with Krispy Kreme's business right now is that there's more attention than ever on healthier eating. With GLP-1 drugs curbing appetites, Krispy Kreme's sweet donuts may also not be as appealing as they may have been in the past. The numbers do seem to corroborate that. The company's sharp decline during the first three months of the year looks troubling. It looks worse than it is, as Krispy Kreme's recent divestiture of Insomnia Cookies affected those results. Organically, its revenue declined by a much more modest rate of 1%. But at the very least, investors can see that the company has been struggling to grow its business of late. That can be a cause for concern, especially in light of its partnership with McDonald's coming to an end. Another problem is the lack of profitability at Krispy Kreme. In the trailing 12 months, it has incurred losses totaling $21.7 million on revenue of $1.6 billion. And in three of the last four years, the company's bottom line has finished in the red. Is Krispy Kreme a bargain buy, or a meme stock? One red flag involving Krispy Kreme stock is that short interest as a percentage of its float has risen to around 35%. It's an extremely high percentage, which shows that many people are betting against the stock. When you combine that with a sudden surge in value, underwhelming financials, and the company struggling with profitability in recent years, it certainly does appear that Krispy Kreme has turned into a bit of a meme stock. Its valuation has crumbled this year, with the stock down nearly 60% since January. While some investors appear willing to take a chance on the stock, there's plenty of risk and uncertainty that come with doing so. Until and unless Krispy Kreme can prove it can get back to growing its business and doing so while turning a profit, you're likely better off putting this food stock on your watch list rather than in your portfolio. Krispy Kreme might become a good investment someday, but it isn't one today. Should you invest $1,000 in Krispy Kreme right now? Before you buy stock in Krispy Kreme, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Krispy Kreme wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,075,791!* Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is Krispy Kreme an Underrated Buy or Just the Latest Meme Stock? was originally published by The Motley Fool
Yahoo
2 days ago
- Business
- Yahoo
Morning Bid: Remembering the downsides to tariffs
(Reuters) -A look at the day ahead in European and global markets from Wayne Cole. Asian markets have been quietly picking up the pieces after the U.S./EU tariff party turned into a bust. It was like being relieved because somebody only burned half your house down. Hey, at least they left the kitchen and the bathroom. European stock futures are fractionally firmer and the single currency has steadied just under $1.1600. The euro's rapid retreat was not entirely a surprise given how crowded the long euro/short dollar trade had got, and the suspicion is speculators will soon be selling the dollar again. After all, come Friday U.S. consumers will be paying a minimum of 15% on all imports into the country, and for the foreseeable future. This tax will squeeze demand and profit margins at home, while eating into export earnings across the globe. These are called beggar thy neighbour policies for a reason. There's also the rather naive notion that such "deals" guarantee a period of certainty ahead. Just look how Trump suddenly gave Russia 10 to 12 days to move on a ceasefire with Ukraine, having set a deadline of 50 days earlier this month. This did not seem in any way planned. Trump just said it off the cuff at a media conference at his golf club in Scotland. If such a deadline can be changed on a whim, who's to say anything agreed in these trade deals cannot be altered at his pleasure. Trump has seen how trade and tariffs can dominate the global news cycle; there's no way he's giving that up anytime soon. Talks with China, for instance, are set to continue in Stockholm today and everybody assumes the deadline for an agreement will be extended by another 90 days. This, entirely incidentally, will allow time for Trump to meet Chinese President Xi Jinping and personally claim yet another biggest deal of all time. For its part, Wall St remains in a world of its own, counting on upbeat results from megacaps this week to justify valuation measures that are the highest since the late 1990s. Meta and Microsoft are due on Wednesday, Apple and Amazon the day after. A slew of European companies also report earnings today. Key developments that could influence markets on Tuesday: - U.S. data on job openings, June trade balance and Conference Board consumer confidence - Fed's two-day meeting starts Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
Morning Bid: Remembering the downsides to tariffs
July 29 (Reuters) - A look at the day ahead in European and global markets from Wayne Cole. Asian markets have been quietly picking up the pieces after the U.S./EU tariff party turned into a bust. It was like being relieved because somebody only burned half your house down. Hey, at least they left the kitchen and the bathroom. European stock futures are fractionally firmer and the single currency has steadied just under $1.1600. The euro's rapid retreat was not entirely a surprise given how crowded the long euro/short dollar trade had got, and the suspicion is speculators will soon be selling the dollar again. After all, come Friday U.S. consumers will be paying a minimum of 15% on all imports into the country, and for the foreseeable future. This tax will squeeze demand and profit margins at home, while eating into export earnings across the globe. These are called beggar thy neighbour policies for a reason. There's also the rather naive notion that such "deals" guarantee a period of certainty ahead. Just look how Trump suddenly gave Russia 10 to 12 days to move on a ceasefire with Ukraine, having set a deadline of 50 days earlier this month. This did not seem in any way planned. Trump just said it off the cuff at a media conference at his golf club in Scotland. If such a deadline can be changed on a whim, who's to say anything agreed in these trade deals cannot be altered at his pleasure. Trump has seen how trade and tariffs can dominate the global news cycle; there's no way he's giving that up anytime soon. Talks with China, for instance, are set to continue in Stockholm today and everybody assumes the deadline for an agreement will be extended by another 90 days. This, entirely incidentally, will allow time for Trump to meet Chinese President Xi Jinping and personally claim yet another biggest deal of all time. For its part, Wall St remains in a world of its own, counting on upbeat results from megacaps this week to justify valuation measures that are the highest since the late 1990s. Meta (META.O), opens new tab and Microsoft (MSFT.O), opens new tab are due on Wednesday, Apple (AAPL.O), opens new tab and Amazon (AMZN.O), opens new tab the day after. A slew of European companies also report earnings today. Key developments that could influence markets on Tuesday: - U.S. data on job openings, June trade balance and Conference Board consumer confidence - Fed's two-day meeting starts
Yahoo
3 days ago
- Business
- Yahoo
Do NRW Holdings' (ASX:NWH) Earnings Warrant Your Attention?
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. In contrast to all that, many investors prefer to focus on companies like NRW Holdings (ASX:NWH), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How Quickly Is NRW Holdings Increasing Earnings Per Share? Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. It certainly is nice to see that NRW Holdings has managed to grow EPS by 17% per year over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. EBIT margins for NRW Holdings remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 14% to AU$3.1b. That's encouraging news for the company! The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. View our latest analysis for NRW Holdings Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for NRW Holdings. Are NRW Holdings Insiders Aligned With All Shareholders? Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions. In the last twelve months NRW Holdings insiders spent AU$46k on stock; good news for shareholders. While this isn't much, we also note an absence of sales. On top of the insider buying, it's good to see that NRW Holdings insiders have a valuable investment in the business. Given insiders own a significant chunk of shares, currently valued at AU$88m, they have plenty of motivation to push the business to succeed. This would indicate that the goals of shareholders and management are one and the same. Does NRW Holdings Deserve A Spot On Your Watchlist? If you believe that share price follows earnings per share you should definitely be delving further into NRW Holdings' strong EPS growth. Not only that, but we can see that insiders both own a lot of, and are buying more shares in the company. Astute investors will want to keep this stock on watch. It is worth noting though that we have found 1 warning sign for NRW Holdings that you need to take into consideration. The good news is that NRW Holdings is not the only stock with insider buying. Here's a list of small cap, undervalued companies in AU with insider buying in the last three months! Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Telegraph
4 days ago
- Business
- Telegraph
Markets would be mad to play a game of chicken with Trump now
'This market just wants to go up.' I have heard this said in the past month on trading floors on both sides of the Atlantic. Market speculators tend to express this kind of sentiment when share price performance is strong but risks to the global economy seem to point to the downside. As major global stock markets break all-time highs, investors are fretting about what may happen on Aug 1 when Donald Trump reinstates the so-called reciprocal tariffs, which have been paused since April 9. Recall that the US president was forced to hit pause to arrest an unfolding financial panic. He sparked fears that the sky-high tariffs he had unveiled a week earlier would trigger an inflationary slump in the US and tip parts of the world economy into recession. In the week following the tariff announcement, the Dow Jones Global Index fell 11pc. Since then, however, stocks have enjoyed a precipitous rise. Now, unlike in April, when sudden tariffs jarred risk appetites, market participants are sanguine about their return. Some market makers talk of a Taco trade – an acronym for 'Trump always chickens out'. They bet that the president will not have the stomach to risk another painful market correction and will kick the can down the road again. After all, the initial 90-day pause should have ended on July 8 but was extended to Aug 1. Trump has built a reputation as a strongman leader who is willing to take big risks. Inviting him to play a game of chicken seems too much like an opportunity that he will welcome in order to prove his mettle once again. The reason for the market rally, more likely, is much more banal and relates to more fundamental developments. First, now that the initial surprise has worn off and thanks to the pauses, businesses and consumers have had time to adjust supply chains, shift inventories, and spread out the costs. Second, because the US has struck deals with a few major economies, the threat of a full-blown tit-for-tat global trade war has been contained. The UK and Japan agreements are a positive signal for the difficult ongoing negotiations with the EU, Canada, and Mexico, which together account for almost half of all US imports. Third, the all-important US–China talk s are running on a separate schedule. After the dramatic escalation in March and April, which amounted to a de facto trade embargo after the baseline US tariff on Chinese goods peaked at 145pc, both sides agreed a 90-day pause in Geneva on May 12. US tariffs are temporarily set at 55pc, while China applies tariffs of 10pc on US imports. Scott Bessent, the US treasury secretary has signalled that the deadline on the US–China talks will likely be extended beyond the Aug 12 deadline. The Yale Budget Lab calculated that the average effective US tariff was 22.5pc on April 7 – the highest since 1909. Once all current and likely deals are accounted for, the eventual average-weighted US tariff will still be the highest it has been in more than a century and little different from the one that Trump announced on 'liberation day'. In its latest update on July 23, which incorporates Trump's deal with Japan (this reduced the baseline tariff from a threatened 25pc to a still-high 15pc), the average weighted tariff was 20.2pc. But US imports are only worth about 3pc of global GDP, and Polymarket odds of a US recession in 2025 have dropped from 65pc in April to 20pc at present. With more time to adjust and with less uncertainty, the dislocations associated with US protectionism have become more manageable. Greater clarity over US trade policy has allowed a host of broader and less prominent positive themes to play a greater role in shaping expectations in financial markets. They include the fading Russian energy shock in Europe, the global demand boost coming from the lagged impact of interest rate cuts by major central banks, the massive defence-and-infrastructure-oriented fiscal expansions in Europe and China, and further tax cuts in the US. In a world where one or two big risks dominate headlines, individual investors can often struggle to see a way through the fog. But prices in markets, which reflect collective fundamentals and the implicit wisdom of the crowd, can tell a different story. Global equities consistently provide a reliable leading indicator for global trade and production. In uncertain times, the market is often the best economist. For instance, in late 2020, as major economies locked down for the upcoming Covid-19 winter wave and economists – including myself – warned that it could take the global economy years to recover from the unfolding mega-recession, global equities hitting all-time highs proved to be the signal for the V-shaped recovery that subsequently took place in 2021. Then, as now, the market's collective wisdom offers valuable clues for those willing to pay attention.
