A wave of retail-driven speculation has spearheaded a dramatic rebound in so-called “meme stocks,” with department store chain Kohl’s (KSS) and action‑cam maker GoPro (GPRO) leading the charge. Both companies, long considered beaten-down small caps, briefly saw their share prices rocket on hot social media buzz and heavy short interest.
Kohl’s: From Dip to Double
- On July 22, Kohl’s shares doubled intraday, surging nearly 100% before cooling to a strong +37.6% gain by the close. This frenzy triggered a NYSE trading halt, reminiscent of the 2021 GameStop/AMC mania (MarketScreener, Wikipedia, Wall Street Pit).
- Around 49% of its float is shorted, setting the stage for a classic short squeeze as retail buyers flooded in (Reuters).
- The rally featured massive volume 183 million shares traded, roughly 25× the 25-day average (MarketScreener). Call options also spiked, placing Kohl’s among the top 10 most‑traded tickers, including high-profile names like Nvidia and Tesla (Reuters).
- Analysts note this surge was almost entirely social media driven, with no material news backing Kohl’s fundamentals pure speculative momentum (AInvest).
GoPro Joins the Party
- GoPro mirrored Kohl’s bounce. In premarket trading, shares jumped up to 90%, later settling with a ~40% gain in early hours (Wall Street Pit).
- At the latest market update, GoPro stood at $1.895, up ~38% day-over-day and around +83% premarket on July 23 (Wall Street Pit).
- Despite a 98% plunge from its 2014 peak, high short interest made it susceptible to a squeeze perfect fodder for meme traders (Wall Street Pit).
Rising Tide of Speculation
- This resurgence aligns with a broader trend: “YOLO” meme‑stock mania is back, supporting a broader rally in speculative and unprofitable stocks since April 8, with 858 companies in the Russell 3000 averaging +36%, outpacing traditional profitable names (The Wall Street Journal).
- Platforms like Stocktwits exploded with chatter around Kohl’s, GoPro, Krispy Kreme, Opendoor, and Beyond Meat, highlighting the power of retail forums (Investing.com UK).
- Short interest levels some exceeding 30 50% gave retailers ammunition to initiate squeezes despite shaky business fundamentals (Investing.com UK, Reuters, The Economic Times).
Market Voices & Caution
- Analysts warn these rallies are highly volatile and speculative, driven more by sentiment than earnings (The Wall Street Journal, MarketWatch).
- Financial commentator Jim Cramer even pivoted: he now advises hedge funds to cover their short positions in meme stocks like Kohl’s, signaling an institutional acknowledgment of their impact (AInvest).
- However, analysts caution these frenzies can fizzle meme stocks often reverse sharply just as quickly as they rise (The Wall Street Journal).
Implications for Investors
| Factor | Implication |
|---|---|
| Retail Power | Social media‑driven traders now flex significant muscle in equities sometimes overshadowing fundamentals. |
| High Short Interest | Marks potential for abrupt squeezes, but also sharp declines when retail sentiment shifts. |
| Volatility Risks | Exceptional price swings both upward and downward make timing critical. |
| Strategic Awareness | Even institutional investors, like hedge funds, are taking note and adjusting positions accordingly. |
Final Take
The rebound of Kohl’s and GoPro underscores meme‑stock dynamics entering a new phase in 2025. Retail investors, empowered by online chatrooms and driven by high short interest, continue to stir dramatic price moves. But caution remains vital: without fundamental support, these speculative surges remain unpredictable and potentially short-lived.
Investors should:
- Recognize the high-risk, high-reward nature of meme stocks.
- Use strict risk management, particularly stop‑losses.
- Avoid overcommitting in highly speculative trades.
While the meme-stock wave is largely fueling the recent rally, its sustainability depends on earning momentum beyond social media hype.
