Kohl’s (KSS) just became the latest player in a déjà vu moment for meme stocks.
On Tuesday, the department store’s stock experienced a rollercoaster rally that caught the attention of Reddit traders, day traders, and Wall Street skeptics alike.
📈 The Surge: From $10 to Over $20 in Minutes
Kohl’s stock more than doubled in early morning trading, jumping from $10.42 to over $21 per share, only to see most of the gains vanish within 30 minutes after the market opened.
Even with the pullback, shares closed up 37% on the day — a massive move for a traditional retail company.
📊 Trading volume? 17x higher than its 30-day average by late morning.
🤔 But Why the Spike? No News, No Earnings, No Upgrade
Here’s the strange part: there was no major corporate announcement, earnings update, or analyst upgrade to explain the surge.
So what’s going on?
Well, Kohl’s checks nearly every box on the “meme stock checklist”:
- ✅ Legacy retail brand with nostalgic value
- ✅ Over 50% of shares shorted (FactSet data)
- ✅ Frequent topic on Reddit’s WallStreetBets
- ✅ Volatile price action attracting speculators
- ✅ Recent history of takeover rumors and bankruptcy talks
According to Neil Saunders, managing director at GlobalData:
“There’s a lot of irrational exuberance. It’s very similar to what happened with Bed Bath & Beyond. Kohl’s hasn’t done anything fundamentally to deserve this kind of move.”
🧠 Retail Traders Smell a Short Squeeze Opportunity
The sudden price action may be part of a coordinated short squeeze, with retail investors piling in to pressure hedge funds betting against the stock.
When a heavily shorted stock starts rising fast, short-sellers are forced to buy back shares, driving the price even higher — creating a feedback loop of volatility.
Kohl’s is now being watched closely as the next GameStop-style play.
📉 The Reality Behind the Hype: Kohl’s Fundamentals Are Weak
Despite the market frenzy, Kohl’s is struggling operationally:
- ❌ Sales expected to decline 5% to 7% in fiscal 2025
- ❌ Facing intense competition from fast fashion and e-commerce
- ❌ Still led by an interim CEO after the previous CEO was ousted in a scandal
- ❌ Store traffic and revenue continue to drop
Translation? The business isn’t improving — the rally is all speculation.
💬 Final Take: Should You Jump In?
If you’re an investor chasing short-term trades, Kohl’s might look tempting.
But if you’re thinking long-term wealth building, this rally feels more like a trap than an opportunity.
That said, meme stock movements are part of modern market culture — and ignoring the power of retail traders is a mistake Wall Street keeps repeating.
📌 TL;DR
- Kohl’s stock surged 100% in early trading, then closed +37%
- No real news — it’s being targeted by meme stock traders
- Over 50% of shares are sold short, making it a short squeeze candidate
- Fundamentals remain weak, with sales forecasted to drop further in 2025
