Stock more than doubles amid retail trading frenzy
Shares of U.S. department store chain Kohl’s skyrocketed on Tuesday, briefly more than doubling in value before settling up 30% at $13.32. The surge triggered a temporary trading halt due to high volatility and pushed Kohl’s to the top of retail investor watchlists. The stock became the No. 1 trending ticker on Stocktwits, reflecting intense interest from the online trading community.
Roughly 87 million shares changed hands by 10 a.m. ET, a volume 11 times higher than the stock’s 25-day moving average. The sudden rise mirrored the explosive trading behavior seen during the 2021 meme stock craze involving GameStop and AMC, when retail investors coordinated to push up heavily shorted stocks.
Short interest fuels explosive gains
LSEG data revealed that approximately 49% of Kohl’s float was shorted — a setup ripe for a short squeeze. When retail traders buy shares en masse, it forces short sellers to buy back shares to cover their positions, accelerating the stock’s ascent. These dynamics were on full display Tuesday, reinforcing comparisons to past meme stock rallies.
Despite Kohl’s well-documented operational challenges, retail traders appeared more focused on momentum than fundamentals. Kim Forrest, chief investment officer at Bokeh Capital Partners, explained, “Kohl’s has a lot of issues, and yet this kind of move exemplifies retail investors jumping on high-volatility plays they hope will pay off.”
Renewed retail enthusiasm spreads beyond Kohl’s
Kohl’s wasn’t the only stock experiencing meme-style attention this week. Shares of Opendoor Technologies, a highly shorted online real estate platform, climbed 10% and have surged over 300% in just six trading sessions. The trend suggests a revival of the retail-driven, high-risk investment behavior that flourished during the early pandemic era, fueled by excess savings and low interest rates.
The reemergence of meme stock momentum comes amid a broader rise in speculative trading, with investors willing to bet on heavily shorted names regardless of long-term outlooks. While these trades can produce eye-popping gains in the short term, analysts continue to warn of the volatility and risks involved.
