Kohl’s shares leap amid KSS stock Reddit chatter, towering short interest and short squeeze buzz — latest stock market news
It started like an adrenaline jolt at Tuesday’s opening bell: Kohl’s Corporation (NYSE: KSS) blasted from $10 to an eye-popping $21.39 in minutes, triggering multiple volatility halts and leaving traders scrambling for a reason beyond pure FOMO. More than 87 million shares had changed hands by 10 a.m. ET—eleven times the recent average—as retail investors piled in on social channels from r/WallStreetBets to Stocktwits, dubbing the department-store stalwart the week’s “next squeeze”.
Key Takeaways
- Shorts on the run: Roughly 49% of Kohl’s 112 million-share float is sold short—about 53 million shares—creating explosive squeeze potential.
- Social surge: KSS became the most-mentioned ticker on Reddit and Stocktwits within hours, echoing 2021’s meme-stock playbook.
Unlike typical earnings-driven rallies, Tuesday’s spike lacked a corporate catalyst. The only Wall Street move of note was a sell-rated Goldman Sachs price-target lift—to just $7—highlighting how detached the run is from fundamentals. Instead, the spark came from viral posts highlighting Kohl’s massive short interest, undervalued real-estate portfolio and the idea that “bond-hedged shorts are ripe for a face-rip”.
Trading desks felt déjà vu from the GameStop saga: exchanges halted KSS twice as prices doubled, then cooled to a still-towering 30% gain by midday. Options activity was equally frenzied; call volume surpassed 66,000 contracts within the first half-hour, nearly quadruple the 20-day average.
Why This Surge Feels Different
Kohl’s story blends meme-stock theatrics with real turnaround intrigue. Activist chatter about unlocking $5-$10 billion in property value, plus a recently installed interim CEO, give bulls a narrative beyond “to the moon” hype. Bears counter that same-store sales remain negative and credit agencies keep trimming ratings, making any valuation pop look premature.
What Happens Next?
- Volatility watch: With half the float shorted, every uptick pressures sellers to cover, but any downtick could unravel momentum just as quickly. Expect more trading halts and wide intraday swings.
- Earnings ahead: Kohl’s next quarterly report is due in late August; concrete evidence of margin improvement—or lack thereof—will test the squeeze thesis.
- Buyout buzz: Private-equity rumors circulate whenever the stock dives; after Tuesday’s fireworks, a strategic bidder could face a much higher sticker price.
Bottom line: Tuesday’s rocket-ride turned Kohl’s into 2025’s newest meme comet, but gravity hasn’t gone away. Whether KSS becomes the next legend or the next cautionary tale will hinge on whether shorts capitulate—and whether management can turn viral excitement into real retail momentum.
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