Latest news with #short squeeze
Yahoo
a day ago
- Business
- Yahoo
Why Is Leslie's (LESL) Stock Rocketing Higher Today
What Happened? Shares of pool products retailer Leslie's (NASDAQ:LESL) jumped 11.9% in the morning session after the stock continued a strong rally amid signs of a potential short squeeze. The stock had already been on a multi-day winning streak, and reports indicated that as of July 25, 2025, it had a high short sale ratio of 32.11%. A short squeeze is a market event that can occur when a heavily shorted stock's price rises, forcing short sellers to buy shares to cover their positions. This buying pressure, in turn, pushed the price even higher. The move on Monday extended a significant run for the stock, which had risen more than 51% since a pivot point on July 17, 2025. This rally also coincided with reports of a broader trend where other highly shorted consumer stocks experienced strong gains. Is now the time to buy Leslie's? Access our full analysis report here, it's free. What Is The Market Telling Us Leslie's shares are extremely volatile and have had 90 moves greater than 5% over the last year. But moves this big are rare even for Leslie's and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 12 days ago when the stock gained 3.5% on the news that the company announced the appointment of a seasoned retail executive, Amy College, as its new Chief Merchandising and Supply Chain Officer. The announcement, made after the market closed on the previous day, was seen as a positive step for the company. The hiring of a new leader to oversee both merchandising and the supply chain can signal to investors a strategic focus on improving product assortment, inventory management, and operational efficiency. These areas are critical for a specialty retailer like Leslie's to navigate a challenging consumer environment and drive profitability. The move suggests the company is actively working to strengthen its leadership team and core business functions. Leslie's is down 71.5% since the beginning of the year, and at $0.65 per share, it is trading 81.5% below its 52-week high of $3.51 from November 2024. Investors who bought $1,000 worth of Leslie's shares at the IPO in October 2020 would now be looking at an investment worth $29.84. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. 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
4 days ago
- Business
- Yahoo
Here's ChatGPT's advice on how to spot the next meme stock
Amid this week's speculative euphoria, we asked ChatGPT what makes a meme stock. The chatbot laid out four things for investors to focus on. The AI also had some ideas about what stocks might be next in line for a short squeeze. What makes a meme stock? ChatGPT has a couple of ideas. When shares of Opendoor Technologies, a little-known online real estate platform, unexpectedly started surging this month, a few other seemingly random names followed. The list of stocks included Krispy Kreme, Kohl's, and GoPro, disparate companies united only by their financial challenges and vaguely retro vibes. On the surface, meme stocks that go parabolic have little in common, but if you look under the hood, there are some similarities in their profiles. How to find the next meme stock? We asked ChatGPT Since the GameStop short squeeze of 2021, investors have been trying to spot the next meme stock before it starts its ascent to the moon. After seeing some investors bragging on Wall Street Bets about getting winning trading advice from ChatGPT, we decided to test the AI's knowledge of the market's speculative frenzy. (We will preface all of this by saying it's not real investment advice. ChatGPT is scouring the internet—including Wall Street Bets! — for wisdom on the subject.) The prompt was: "What's the best way to identify what could be the next meme stock?" After clarifying what a meme stock is, the chatbot responded that identifying one is "more of an art than a science." It then proceeded to lay out some more detailed criteria for investors to think about: High short interest (>20% float), Days-to-cover ≥5The bot suggested Kohl's, Opendoor, and GoPro as examples of stocks with high interest from short sellers, naming and ShortInterestTracker as tools for assessment. Surge in social mentions (Reddit/Twitter)It highlighted the importance of noting sudden increases in a sock's mentions or upvotes on social media platforms such as X, Reddit and Discord, citing platforms including ApeWisdom and AltIndex. Unusual options activity (OI spikes)While discussing unusual options activity, it stated that "retail traders often pile into out-of-the-money (OTM) call options, creating gamma squeezes as market makers hedge by buying shares-fueling price surges." Meme narrative (pop‑culture, underdog story)ChatGPT highlighted the importance of a narrative, citing the David vs. Goliath mentality that drove the GameStop short squeeze or companies with products popular with retail investors, such as Krispy Kreme or AMC Entertainment, a fellow struggling meme stock. Wanting to test the AI's predictive abilities, we asked: "Based on this criteria, can you predict the next meme stock?" ChatGPT quickly named American Eagle Outfitters as its pick for the next meme stock based on its criteria, providing reasons it checks all four boxes. Per the bot: Social Media MomentumIts recent ad campaign starring Sydney Sweeney has ignited buzz across Reddit, X, and Stocktwits, pushing the stock up ~10% on the Interest & Squeeze PotentialWith ~13% of its float shorted, there's room for a squeeze if sentiment continues to climb. Options FlowEarly reports suggest call option volume has ticked upward around recent campaign news. Narrative + Meme-WorthinessThe Sydney Sweeney campaign taps into pop-culture, star power, and a viral storyline — all classic ingredients for meme stock fervor." Indeed, the fashion retailer's new ad campaign featuring Sweeney has made American Eagle a top trending stock across retail trading forums. While the stock is only up 11% for the week, the assessment shows that ChatGPT can spot trends as they're unfolding. Though it wasn't asked to, the chatbot added honorable mentions to what could be the next meme stock, including Krispy Kreme, GoPro, and Rocket Lab USA. It should be noted that these aren't great picks by the bot, as all of these stocks were already fading after surging earlier in the week. Meanwhile, RocketLab, though it has fairly high short interest, is not actually a meme stock. It is possible that ChatGPT confused it with Rocket Companies, which has much higher short interest and was among the meme shares to surge this the original article on Business Insider Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Is Opendoor Stock a Buy, Sell, or Hold in July 2025?
Opendoor (OPEN) has become the latest meme stock phenomenon, surging 350% in the past month and 100% since hedge fund manager Eric Jackson began promoting it on social media as a potential '100-bagger.' The stock rocketed from $0.50 to highs above $4.90 before falling to the $2.40 level. This explosive rally appears to be driven primarily by retail speculation and social media hype, rather than by fundamental improvements. High short interest at 20.7% of its float has created a classic short squeeze scenario, amplified by social media momentum and Jackson's bullish calls, which cite expense optimization efforts. More News from Barchart Billionaire Peter Thiel is Betting Big on Stablecoins. Should You Buy the "MicroStrategy of Ethereum," Too? This Former AI Underdog Might Be the Next Nvidia 2 Recession-Proof Dividend Stocks to Buy for the Second Half of 2025 Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! However, OPEN stock remains more than 90% below its 2021 peak of $39.24, reflecting underlying business challenges in the capital-intensive iBuying model. No meaningful catalysts for news or operational improvements have justified the parabolic move. While Jackson points to profitability optimization, Opendoor still faces structural headwinds from higher interest rates, reduced housing turnover, and persistent cash burn. The current rally exhibits classic characteristics of meme stocks: massive volatility, retail-driven momentum, and a disconnection from fundamentals. Is Opendoor Stock a Good Buy Right Now? Opendoor Technologies delivered mixed first-quarter results, demonstrating operational progress despite ongoing challenges in the housing market. The iBuying platform reported $1.2 billion in revenue, roughly flat year-over-year, while making strides toward profitability through aggressive cost reduction and strategic pivots. Opendoor's adjusted EBITDA loss narrowed dramatically to $30 million from $50 million in the prior year, primarily driven by a 33% reduction in fixed operating expenses. Opendoor cut $19 million in costs year-over-year while maintaining contribution margins of 4.7%. Management projects positive quarterly adjusted EBITDA of $10 million to $20 million for Q2, marking the first profitable quarter in three years. CEO Carrie Wheeler outlined an ambitious expansion of Opendoor's agent partnership model, flipping from agents bringing customers to Opendoor to the company referring high-intent sellers to vetted agent partners. This channel strategy aims to improve conversion rates while generating asset-light revenue through commission sharing on listings. The pilot program operates across 11 markets, with agents conducting in-home assessments and providing local expertise to enhance the customer experience. Opendoor is maintaining pricing discipline with higher spreads while reducing acquisition volumes. It expects to purchase approximately 1,700 homes in Q2, down from 3,609 in Q1, following a more seasonal approach that concentrates activity in Q1 and Q4. Opendoor ended the quarter with $1 billion in total capital and successfully renewed multiple credit facilities, demonstrating continued lender confidence. The company holds 7,080 homes worth $2.4 billion in net inventory. While management expects contribution margin improvements in the second half of 2025, revenue is projected to decline year-over-year in Q3 and Q4 due to reduced acquisition volumes. The strategy prioritizes margin protection and cost discipline over growth until market conditions improve. Opendoor's focus on operational efficiency and strategic pivots positions it for sustained profitability, though execution remains critical in an uncertain housing environment. What Is the Target Price for Opendoor stock? Analysts expect Opendoor to increase revenue from $5.15 billion in 2024 to $9 billion in 2029. Wall Street estimates its free cash flow to improve to $180 million in 2029, compared to an outflow of $620 million last year. If OPEN stock trades at 15x forward FCF, it could gain close to 70% over the next four years. Of the 10 analysts covering OPEN stock, one recommends 'Strong Buy,' seven recommend 'Hold,' one recommends 'Moderate Sell,' and one recommends 'Strong Sell.' The average OPEN stock price target is $1.14, more than 50% below the current price. The ongoing rally in Opendoor stock appears to be a speculative bubble driven by social media promotion rather than genuine business improvement. The extreme volatility and lack of fundamental catalysts suggest significant downside risk when the momentum inevitably reverses. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
5 days ago
- Business
- Yahoo
Opendoor, Kohl's resume rally as meme stock frenzy continues
(Reuters) -Shares of retail favorites Opendoor Technologies and Kohl's resumed their rally on Thursday, fueled by continued meme stock euphoria and broader markets hitting record highs. Opendoor Technologies, an e-commerce platform for residential real estate, rose 19% to $2.73, adding to its more than 400% surge in July. Bullish posts last week on by EMJ Capital portfolio manager Eric Jackson helped ignite the rally. 'This is not a meme stock,' Jackson wrote Thursday. '$OPEN is a real platform with real cashflow potential. The only question is how fast we push it to full value.' Struggling department store operator Kohl's, which joined the meme stock rally earlier in the week, jumped 10.5%. Donut chain Krispy Kreme gained 1.5%, while action camera maker GoPro edged up 0.3%. "You're getting some of the meme trade," said Thomas Hayes, chairman at Great Hill Capital LLC in New York. "The big early move was a short squeeze and now this is residual short squeeze followed by people starting to come and chase the momentum." Most of these companies are loss-making, making them targets for short sellers betting the shares will fall. However, retail traders often buy these cheaper stocks, sparking rapid rallies. When this occurs, short sellers are forced to unwind positions in a phenomenon known as a short squeeze. LSEG data show most of these firms are heavily shorted. Mom-and-pop traders bought GoPro and Krispy Kreme heavily on Wednesday, with Krispy Kreme seeing its biggest one-day inflow since May 2024. The recent moves revived memories of the Reddit-driven meme stock frenzy of 2021, when amateur investors pushed up shares of video-game retailer GameStop and cinema chain AMC, burning hedge funds that were on the other side of the trade. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Opendoor, Kohl's resume rally as meme stock frenzy continues
(Reuters) -Shares of retail favorites Opendoor Technologies and Kohl's resumed their rally on Thursday, fueled by continued meme stock euphoria and broader markets hitting record highs. Opendoor Technologies, an e-commerce platform for residential real estate, rose 19% to $2.73, adding to its more than 400% surge in July. Bullish posts last week on by EMJ Capital portfolio manager Eric Jackson helped ignite the rally. 'This is not a meme stock,' Jackson wrote Thursday. '$OPEN is a real platform with real cashflow potential. The only question is how fast we push it to full value.' Struggling department store operator Kohl's, which joined the meme stock rally earlier in the week, jumped 10.5%. Donut chain Krispy Kreme gained 1.5%, while action camera maker GoPro edged up 0.3%. "You're getting some of the meme trade," said Thomas Hayes, chairman at Great Hill Capital LLC in New York. "The big early move was a short squeeze and now this is residual short squeeze followed by people starting to come and chase the momentum." Most of these companies are loss-making, making them targets for short sellers betting the shares will fall. However, retail traders often buy these cheaper stocks, sparking rapid rallies. When this occurs, short sellers are forced to unwind positions in a phenomenon known as a short squeeze. LSEG data show most of these firms are heavily shorted. Mom-and-pop traders bought GoPro and Krispy Kreme heavily on Wednesday, with Krispy Kreme seeing its biggest one-day inflow since May 2024. The recent moves revived memories of the Reddit-driven meme stock frenzy of 2021, when amateur investors pushed up shares of video-game retailer GameStop and cinema chain AMC, burning hedge funds that were on the other side of the trade.
