Kohl’s & Opendoor Soar in 2025 Meme Stock Revival: Are Short Squeezes Back?

Kohl’s and Opendoor are leading a new meme stock frenzy in July 2025 with dramatic surges. Analysis of short squeezes and retail investor momentum driving the latest market phenomenon.

Key Takeaways

Just as WallStreetBets opened a new era of trading four years ago, retail investors are once again flocking to heavily shorted companies like Kohl’s and Opendoor. Kohl’s shares jumped 37.7% on Tuesday, with intraday gains exceeding 100% that triggered volatility-induced trading halts on the New York Stock Exchange. This represents a new investment trend emerging as the stock market hits record highs and undervalued opportunities become increasingly scarce.

Background and Timeline of the Meme Stock Phenomenon

At the center of the recent meme stock frenzy are Kohl’s (KSS) and Opendoor (OPEN). Kohl’s surged 38% to close at $14.34, experiencing volatile trading throughout the day. The stock more than doubled intraday before giving back some gains, with trading briefly suspended due to volatility. This represents a dramatic move for a stock that had been trading in single digits since March 11.

Opendoor’s story is even more dramatic. Opendoor Technologies jumped as much as 121% on Monday, continuing a gravity-defying rally that began last week. Over the past month, shares have gained 190%, with short interest, activist attention, and retail momentum creating a perfect storm.

Data and Chart Analysis

The numbers reveal the scale of this phenomenon. Opendoor held more than 135 million shares in short positions as of early July, representing approximately 22% of its float. This level of short interest provides fuel for potential squeezes.

Looking at Kohl’s fundamentals makes the stock surge even more intriguing. Despite the impressive Kohl’s stock rally, the company actually expects same-store sales to decline between 4% and 6% for fiscal 2025. Given the current challenges facing retailers, the Kohl’s stock surge appears somewhat disconnected from business fundamentals.

Expert Analysis and Market Commentary

Major financial outlets including Bloomberg are analyzing this phenomenon as a revival of meme stock mania. Opendoor recorded a net loss of $392 million in 2024 and faced potential Nasdaq delisting, though the company is working to reach more sellers through partner real estate agents.

This situation displays classic meme stock characteristics. Regardless of companies’ actual performance, retail investor interest and social media platform buzz are driving stock prices higher.

Market Implications and Ripple Effects

This meme stock phenomenon sends several important market signals. First, retail investors’ influence remains powerful. Four years after the GameStop and AMC saga, organized retail investors still possess the ability to move markets.

Second, stocks with high short interest continue to be targets for squeezes. Institutional investors’ short positions are being perceived as opportunities by retail traders.

Third, technical factors and sentiment are having greater short-term impact than traditional value investing principles. Kohl’s surge despite declining sales forecasts demonstrates this trend.

Outlook and Risk Factors

The sustainability of meme stock phenomena requires careful consideration. Historical cases show these surges often end as short-term events. Particularly, rallies not supported by fundamentals can lead to sharp declines at any time.

Investors should be cautious not to get swept up in FOMO (Fear of Missing Out) psychology. High volatility and unpredictable movements can result in significant losses.

Regulatory authorities’ actions are also factors to watch. Following past meme stock incidents, market manipulation surveillance has intensified, and similar measures could emerge this time.

Lessons from the New Meme Stock Era

The surges in Kohl’s and Opendoor demonstrate that retail investors’ collective actions can still significantly impact markets. However, such investments carry high risks and can result in substantial losses without thorough risk management. Investors should approach cautiously with long-term perspectives rather than focusing on short-term gains.