Kohl’s (KSS) had a dramatic upswing on Tuesday, surging more than 30% in mid-morning trading. This surge was driven by a wave of retail investor enthusiasm, continuing the meme stock frenzy. The retailer's stock price skyrocketed as high as $21.39, causing a brief trading halt by the New York Stock Exchange after hitting the volatility limit. This latest jump follows a similar rally by Opendoor, which saw its stock more than double earlier this week. Both companies are now riding the retail meme stock wave, as traders on forums like WallStreetBets pile into heavily shorted stocks in hopes of triggering a short squeeze.
The Retail Meme Stock Craze Continues
The rise in Kohl’s stock is the latest development in the meme stock frenzy, where retail investors have targeted heavily shorted companies in a bid to drive up prices. Kohl’s, once trading at a pandemic-era high of around $60, has struggled in recent years, with its stock plummeting to a 52-week low of $6.04 in April. Despite its underperformance, Kohl’s has become the latest focus of retail traders, many of whom are hoping to replicate the success of past meme stock rallies like GameStop and AMC.
Kohl’s opened the day with a 100% jump in premarket trading, hitting highs of $21.39 before the NYSE stepped in to halt trading due to excessive volatility. With nearly half of Kohl’s float, 49%, being shorted, retail traders have seized on the opportunity to create a "short squeeze," hoping to force those betting against the stock to buy shares to cover their positions. This has sparked a flurry of activity on Reddit’s WallStreetBets, where users have been posting about their trades, further fueling the frenzy.
A History of Struggles and New Leadership
Despite the recent surge, Kohl’s has had a turbulent history. After a challenging post-pandemic recovery, the company’s stock struggled to find stability, with same-store sales declining 6.7% in its fiscal fourth quarter of 2025. The retailer’s attempt to refocus on key areas like Sephora beauty products and value-focused offerings for middle-income consumers did little to turn the tide.
In May, Kohl’s found itself deep in leadership challenges when then-CEO Ashley Buchanan was removed from his post after an ethical breach involving a conflict of interest with a vendor contract. Board chair Michael Bender was appointed as interim CEO, and the company’s first-quarter results in May showed a 4.1% drop in same-store sales. Looking ahead, Kohl’s expects sales to decline by 4-6% in fiscal 2025, adding to concerns about its long-term recovery prospects.
Opendoor and Kohl’s: A Meme Stock Pairing
Kohl’s isn't the only stock riding the wave of retail-driven gains. Opendoor, the iBuyer platform, has also been part of the recent meme stock rally. Like Kohl’s, Opendoor had faced its share of struggles, with its stock price plummeting in recent months. However, the surge in retail interest has reignited momentum for Opendoor, with its stock rising dramatically earlier this week. Both companies share a similar underperformance story, but their rise to meme stock fame shows how retail traders are targeting high short-interest stocks in an attempt to drive prices higher.
This renewed attention from retail investors has created a volatile environment for both stocks, with large price swings and trading halts reflecting the high-risk, high-reward nature of meme stock trading. While both companies have had disappointing earnings reports and struggled to regain traction, their sudden surge in popularity underscores the power of retail traders in today's market.
Looking Ahead
As the meme stock frenzy continues, investors will be closely watching Kohl’s and Opendoor to see whether their gains can be sustained or if the volatility will eventually calm. For Kohl’s, the key question remains whether retail-driven enthusiasm can overcome its operational challenges, especially with declining sales projections and ongoing leadership instability. The short interest in Kohl’s suggests that a short squeeze could continue to fuel volatility in the stock, but whether the business can regain its footing remains unclear.
