Latest news with #KohlsCorp
Bloomberg
2 days ago
- Business
- Bloomberg
Short Sellers Rack Up $2.5 Billion Loss on Riskiest US Stocks
It's been a brutal month for traders shorting the riskiest US stocks, and as animal spirits imbue retail investors with boundless confidence, strategists expect the misery to continue for bears. As of Thursday, investors had lost $2.5 billion in July betting against the 50 US-listed stocks with the highest short interest, according to data from S3 Partners. Doubting the hype in those firms, which include meme-stock darling Kohl's Corp., produced four times greater losses than the average short in the US market as individual traders have pushed into a number of speculative names.
Bloomberg
4 days ago
- Business
- Bloomberg
‘I Can Get Real Gains': Meme Traders Risk It All to Beat S&P 500
A self-described 'conservative" investor bet $20,000 on Opendoor Technologies Inc. A 20-year-old student threw $2,000 down on Kohl's Corp. options. Another retail trader picked his targets on advice from ChatGPT. Meme-stock froth returned to markets this week, as retail investors piled into the heavily shorted stocks of struggling companies. Even with the S&P 500 setting fresh records, many couldn't resist chasing profits in the volatile swings that come when the day-trading crowd on social media identifies a new squeeze.
Yahoo
6 days ago
- Business
- Yahoo
Kohl's Becomes Traders' Latest Meme Darling
Kohl's Corp. shares more than doubled Tuesday, minting it as the newest meme stock, amid an influx of mentions by retail traders on social media. Bloomberg's Norah Mulinda has more on the story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Kohl's Shares Shoot Up Over 105% as Meme Stock Dynamics Overwhelm Retail Issues
Kohl's Corp. on Tuesday went abruptly from beleaguered broadline retailer and beaten-down stock to the big gainer on Wall Street as traders took their cue from social media and dove in. Shares of Kohl's shot up as much as 105 percent to $21.39 shortly after the opening bell on Tuesday — enough that trading in the stock was briefly halted to cool the market down. More from WWD Kohl's Upping the Ante on Footwear During Critical Back-to-School Season Kohl's Narrows Q1 Net Loss, Beats Expectations Kohl's Plans Refinancing With $360M Offer of New Senior Secured Notes The stock settled at an increase of 37.6 percent to $14.34, leaving the company with a market capitalization of $1.6 billion. There was no corporate news driving the big run-up, but a confluence of market dynamics. Sixty-six percent of the stock's float was sold short as of the end of June, according to Yahoo Finance. That has two-thirds of the retailer's investors betting the stock will fall. But if the stock rises, short sellers will eventually have to take the loss and those losses grow as the stock goes higher, creating a rush for the exit as the short sellers are squeezed. Short squeezes can happen when a troubled company bounces back, catching doubters unawares. But Kohl's is also caught up in the world of meme trading, where investors on sites like Reddit rally around a name and sway the broader market. Shares of videogame retailer Game Stop famously rallied in 2021 as a grassroots campaign sought to squeeze out the shorts on the stock. For the company in question, meme stock bumps and short squeezes can be distracting, but have limited direct impact on operations. However, the episode does highlight the tough spot Kohl's is in as meme investors tend to go after weaker stocks where they can move the market. And Kohl's has been in something of a perpetual turnaround. Former chief executive officer Michelle Gass was dogged by activist investors before she left to take charge at Levi Strauss & Co. Tom Kingsbury stepped in for two years as CEO only to see his efforts fall flat. The next great hope, CEO Ashley Buchanan, was fired after three months in April, after engaging in vendor transactions with a romantic interest under unusual terms. Sales fell 4.1 percent in the first quarter and the company projected the top line would fall by 5 percent to 7 percent this year. Now Kohl's is looking to turn that trend around, find a permanent CEO and navigate tariffs and cautious consumers — all while ignoring a new kind of chaos in the stock market. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange
Bloomberg
6 days ago
- Business
- Bloomberg
Meme Revival Turns Focus to Stocks at Risk of a ‘Gamma Squeeze'
The latest bout of meme stock mania, in which retail investors are pocketing quick fortunes by piling into heavily-shorted stocks like Kohl's Corp. and Opendoor Technologies Inc., is likely getting some help from what Wall Street derivatives pros call a gamma squeeze. A gamma squeeze occurs when a rising stock price forces options dealers who have sold call contracts to swiftly adjust their hedges, sending the price even higher. The wild swings can be seen in both directions, as the dealers buy into rallies and sell into reversals.
