Faddish stock trends around catchy stock market acronyms are fun — until the music stops. And "DORK" stock investors are finding this out the hard way.
Speculative DORK stocks, Krispy Kreme (DNUT), Opendoor Technologies (OPEN), Rocket Companies (RKT) and Kohl's (KSS), got swept up in a meme-stock rally this year. Individual investors pinpointed these stocks due to their heavy short interest.
But like many of the other meme stocks that took off in 2021 only to flame out, the DORK stocks have lost more than half their value from their 52-week highs. That hands investors a loss of $13 billion from the high.
Krispy Kreme, the D in DORK due to its stock symbol, has gone real sour, real fast. Shares tanked 7% on Thursday to 3.18 a share on disappointing quarterly results.
The company lost 15 cents a share on an adjusted basis, missing the target of a loss of 3 cents a share. The stock is now down 75% from its high and 68% lower this year. Investors who bought at the high are down $1.6 billion. The RS Rating is now 3.
The DORK stock holding up the best on a percentage basis is Rocket, a mortgage servicing company. It's only down 18% from its high and is still up 56% this year. The RS Rating is holding strong at 91.
But that tumble from the high shredded the most wealth among the DORK stocks: $8.1 billion. And analysts are forecasting the company's profit will fall 6% this year.
The fall in the overnight fortunes by the DORK stocks is a reminder of how even stock trends with lots of momentum can fade just as fast.
| Company | Symbol | % ch. from high | Value lost from high, $ billions |
|---|---|---|---|
| Krispy Kreme | DNUT | -74.9% | -$1.6 |
| Opendoor Technologies | OPEN | -61.8% | -$2.2 |
| Rocket Companies | RKT | -17.9% | -$8.0 |
| Kohl's | KSS | -47.2% | -$1.1 |
| Total loss | -$13.0 |
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