Latest news with #Kohl
Yahoo
5 days ago
- Business
- Yahoo
Kohl's shares quickly rose in a 'meme-stock' rally. What to know.
Kohl's Corp shares briefly doubled in value to a ten-month high of $21.23 on July 22, making it one of the most traded stocks on retail platforms. The chain became the latest 'meme stock,' as the surge in trading was driven by online discussions on platforms like Reddit's WallStreetBets. Reuters reported that the volume of the Wisconsin-based company's stock caused a temporary halt in trading. The share price closed at approximately $14.34 per share, representing a 38% increase for the day. The recent trading frenzy resembles the 2021 "meme stock" rally, marked by surges in stocks like GameStop and AMC Entertainment. Contributing factors included COVID-19 lockdowns, which increased savings, government stimulus checks and low interest rates that drove more investors into the stock market. Here's what you need to know about the Kohl's 'meme stock' rally: What are meme stocks? A meme stock is a nickname for a company whose shares get a boost when retail traders rally around it on platforms such as Reddit, and X to trigger a short squeeze, according to Reuters. These companies are often facing losses, but meme stock traders love them for their cheap stock price. WallStreetBets on Reddit has gained popularity as a forum for discussing the stock market and sharing stock recommendations. Often, those companies have a large amount of shares being shorted, which can lead to price increases and force hedge funds and other firms betting against these companies to take a sizable financial loss. How much trading took place in Kohl's shares? The average trading volume for Kohl's is roughly 8.7 million shares a day. However, on July 22, traders were moving as high as 190 million shares of stock. Kohl's stock continues wild ride: CNBC's Cramer says 'something good' could come at company What do experts say about meme stock trading? David Swartz, analyst with Morningstar who monitors Kohl's, told the Milwaukee Journal Sentinel, part of the USA TODAY network, that Kohl's share price has been steadily increasing in recent months. 'It's been building for a while,' Swartz said. 'It has been building from its lows, and people started promoting it online.' Swartz said the volume on July 22 was astronomically higher than usual. 'That will typically happen when there's a big move,' Swartz said. Those who bet against the stock likely lost money or had to buy more stock to cover their losses, he added. Even with the stock's performance increasing in recent weeks, Swartz said he doesn't expect the trading frenzy to last. Macy's and Bed, Bath & Beyond are examples of companies that have been caught up in the 'meme stock' rally, but neither company's future financial situation has changed. Contributing: Ricardo Torres, Milwaukee Journal Sentinel; Reuters This article originally appeared on USA TODAY: Kohl's shares quickly rose in a 'meme-stock' rally. What to know. Sign in to access your portfolio
USA Today
5 days ago
- Business
- USA Today
Kohl's shares quickly rose in a 'meme-stock' rally. What to know.
Kohl's Corp shares briefly doubled in value to a ten-month high of $21.23 on July 22, making it one of the most traded stocks on retail platforms. The chain became the latest 'meme stock,' as the surge in trading was driven by online discussions on platforms like Reddit's WallStreetBets. Reuters reported that the volume of the Wisconsin-based company's stock caused a temporary halt in trading. The share price closed at approximately $14.34 per share, representing a 38% increase for the day. The recent trading frenzy resembles the 2021 "meme stock" rally, marked by surges in stocks like GameStop and AMC Entertainment. Contributing factors included COVID-19 lockdowns, which increased savings, government stimulus checks and low interest rates that drove more investors into the stock market. Here's what you need to know about the Kohl's 'meme stock' rally: What are meme stocks? A meme stock is a nickname for a company whose shares get a boost when retail traders rally around it on platforms such as Reddit, and X to trigger a short squeeze, according to Reuters. These companies are often facing losses, but meme stock traders love them for their cheap stock price. WallStreetBets on Reddit has gained popularity as a forum for discussing the stock market and sharing stock recommendations. Often, those companies have a large amount of shares being shorted, which can lead to price increases and force hedge funds and other firms betting against these companies to take a sizable financial loss. How much trading took place in Kohl's shares? The average trading volume for Kohl's is roughly 8.7 million shares a day. However, on July 22, traders were moving as high as 190 million shares of stock. Kohl's stock continues wild ride: CNBC's Cramer says 'something good' could come at company What do experts say about meme stock trading? David Swartz, analyst with Morningstar who monitors Kohl's, told the Milwaukee Journal Sentinel, part of the USA TODAY network, that Kohl's share price has been steadily increasing in recent months. 'It's been building for a while,' Swartz said. 'It has been building from its lows, and people started promoting it online.' Swartz said the volume on July 22 was astronomically higher than usual. 'That will typically happen when there's a big move,' Swartz said. Those who bet against the stock likely lost money or had to buy more stock to cover their losses, he added. Even with the stock's performance increasing in recent weeks, Swartz said he doesn't expect the trading frenzy to last. Macy's and Bed, Bath & Beyond are examples of companies that have been caught up in the 'meme stock' rally, but neither company's future financial situation has changed. Contributing: Ricardo Torres, Milwaukee Journal Sentinel; Reuters
Business Insider
6 days ago
- Business
- Business Insider
The DORKs are popular this week. Here's the new class of meme stocks retail traders are pumping to the moon.
The DORKs are popular this week. With stocks at record highs, there's a new class of meme stocks that's grabbed the attention of retail traders. Absent are the OG meme names GameStop and AMC. Those early favorites have been replaced by another group. The DORKs—an acronym being thrown around by bullish traders to refer to the ticker symbols of Krispy Kreme, Opendoor, Rocket Lab, and Kohl's—are spiking in the last few days, with the burst of enthusiasm sparked by a stunning rally in Opendoor stock that's mostly cooled off even as the rest of the group surges. It's looking similar to 2021, when everything from crypto to pandemic-era blank check firms to highly-shorted companies with weak financials were getting pushed to dizzying heights. And with recent legislation proposing to loosen day trading restrictions by lowering the minimum margin account threshold, there's never been a more retail-friendly time in the markets. To take a page from Warren Buffet's book, investors are getting greedy, which means extra caution may be warranted. Tony DeSpirito, head of US fundamental equities at BlackRock, is sensing some pockets of froth in the market as sentiment continues to rise and meme stocks surge. In particular, stocks with high multiples but low growth are concerning to DeSpirit. "Meme stocks are the epitome of greed," DeSpirito told Business Insider. "If I'm advising an individual, I'd tell them to stay away from the meme stocks and get the stocks that actually have good cash flow, good earnings, etc." Here's what's been moving in the meme stock world. Opendoor Technologies Prior to last week, Opendoor was an unloved penny stock on the verge of delisting from the Nasdaq. After hedge fund manager Eric Jackson shouted out the stock on X and gave it a hefty $82 price target, enthusiasm for Opendoor surged, activating the retail trader cohort who quickly went all-in. The stock has rallied over 440% in the last month alone, going from under a dollar to $2.88, even hitting $4.71 briefly at one point on Monday. The rally has stalled in recent days, with the shares down as much as 28% on Wednesday. The stock is still up 310% in the last month. Kohl's Corporation Kohl's stock jumped 38% on Tuesday, not on the heels of corporate news or earnings, but rather r/WallStreetBets chatter. Retail traders identified a short interest of nearly half of the company's float, making the stock a perfect candidate for a short squeeze. The frenzy caused trading in Kohl's shares to be temporarily paused during Tuesday's session. Krispy Kreme The doughnut chain Krispy Kreme surged 28% on Tuesday. The stock started 2025 trading at nearly $10 and proceeded to slide downwards in the following months after the company reported disappointing earnings—until this week. The stock soared again on Wednesday, up as much as 39%before paring gains. Krispy Kreme also has a significant short interest level of 33%, making it another target for Reddit short squeezer. GoPro Digital camera producer GoPro was also swept up in the meme-stock craze. In its heyday back in 2015, the stock traded at $67. A big influx of retail volume has propelled the stock from under a dollar to above $2 immediately upon Wednesday's open. The stock was up as much as 72% on Wednesday before paring the gain to around 40%. Nearly 10% of GoPro's float is shorted.
Business Insider
6 days ago
- Business
- Business Insider
Daily stock watch: WallStreetBets has got people watching Kohl's
Kohl's shares rose 2% before the opening bell after a 38% surge on Tuesday. Increased Reddit chatter about Kohl's high short interest fueled the stock's rise. Krispy Kreme, Rocket Companies, Lockheed Martin, and NIO also saw notable premarket moves. This is where they were trading premarket at 7 a.m. ET Wednesday — and what's driving the moves. 1. Kohl's The move: The department store giant was down 0.4% to $14.29 after jumping about 38% by the close on Tuesday. Why: The stock surged after chatter on WallStreetBets Reddit thread about Kohl's stock's high short interest, which prompted retail investors to pour in. 2. Krispy Kreme The move: The doughnut chain soared almost 20% to $4.96 per share, bringing total gains since the beginning of the week to over 50%. Why: Discussions across Reddit, X, and other platforms about a potential short squeeze have fueled interest in Krispy Kreme, despite its first quarter results, its most recent, showing a 15% decline in revenue year-on-year. 3. Rocket Companies The move: Rocket Companies surged more than 6% to $17.07 per share following an increase of about 6% on Tuesday. Why: The Detroit -based financial services firm is set to announce its results for the second quarter next week. Analysts expect the company to report a boost in earnings after closing its acquisition of Redfin. 4. Lockheed Martin Corporation The move: The American defense and aerospace manufacturer was up nearly 1% to $414.05 a share after falling 11% by Tuesday's close. Why: Lockheed Martin reported an 80% fall in profits in its second quarter on Tuesday. It said it lost $1.6 billion to pretax charges connected to a classified defense program. 5. NIO The move: The Shanghai-headquartered, NYSE-listed EV maker rose 4% to $5.20 a share, having shot up almost 11% on Tuesday.
Business Insider
6 days ago
- Business
- Business Insider
Daily stock watch: WallStreetBets has got people watching Kohl's
Kohl's shares rose 2% before the opening bell after a 38% surge on Tuesday. Increased Reddit chatter about Kohl's high short interest fueled the stock's rise. Krispy Kreme, Rocket Companies, Lockheed Martin, and NIO also saw notable premarket moves. Kohl's, Krispy Kreme, Rocket Companies, Lockheed Martin, and NIO are catching the interest of investors. This is where they were trading premarket at 7 a.m. ET Wednesday — and what's driving the moves. 1. Kohl's The move: The department store giant was down 0.4% to $14.29 after jumping about 38% by the close on Tuesday. Why: The stock surged after chatter on WallStreetBets Reddit thread about Kohl's stock's high short interest, which prompted retail investors to pour in. 2. Krispy Kreme The move: The doughnut chain soared almost 20% to $4.96 per share, bringing total gains since the beginning of the week to over 50%. Why: Discussions across Reddit, X, and other platforms about a potential short squeeze have fueled interest in Krispy Kreme, despite its first quarter results, its most recent, showing a 15% decline in revenue year-on-year. 3. Rocket Companies The move: Rocket Companies surged more than 6% to $17.07 per share following an increase of about 6% on Tuesday. Why: The Detroit -based financial services firm is set to announce its results for the second quarter next week. Analysts expect the company to report a boost in earnings after closing its acquisition of Redfin. 4. Lockheed Martin Corporation The move: The American defense and aerospace manufacturer was up nearly 1% to $414.05 a share after falling 11% by Tuesday's close. Why: Lockheed Martin reported an 80% fall in profits in its second quarter on Tuesday. It said it lost $1.6 billion to pretax charges connected to a classified defense program. 5. NIO The move: The Shanghai-headquartered, NYSE-listed EV maker rose 4% to $5.20 a share, having shot up almost 11% on Tuesday. Why: Shares rose after the company started letting Chinese customers test drive a new SUV on Tuesday. The car is to officially launch at the end of July.
