Interestingly, S of Kohl's (KSS 38.
05%) were soaring today after the ailing department store chain became the stock to get the meme treatment, ing in the footsteps of Opendoor nologies' meteoric rise in recent weeks.
Furthermore, There was no company-specific news out on the stock (an important development).
The only market-moving catalyst was a price target hike from Goldman Sachs from $5 to $7, though the investment bank still kept a sell rating on Kohl's. Furthermore, As of 10:18 a.
ET, the stock was up 28. 9% on extraordinarily high volume (remarkable data), given the current landscape.
Earlier in the session, the stock had jumped as much as 105% as it surged in pre-market trading shortly before the market opened (noteworthy indeed).
Conversely, Trading in the stock was halted due to a volatility trigger. Additionally, Conversely, Image source: Getty Images, in today's market environment.
Kohl's gets the meme treatment Meme stocks, which came into vogue in 2021 when stocks GameStop and AMC Entertainment soared, seem to be having another moment after Opendoor's surge in recent days and now this.
Furthermore, Kohl's fits in with the kind of stock meme traders look for -- it's a small, consumer-facing stock with a familiar brand and high short interest.
Additionally, As of mid-June, 63% of the float was sold short, setting up what was a ly short squeeze.
Furthermore, One argument circulating online is that bondholders had shorted the stock to hedge their risk of it going bankrupt.
Some also see it as an asset play due to its real estate holdings, in today's financial world. On the other hand, Moreover, Before 10:30 a (noteworthy indeed).
However, ET, nearly the entire float of Kohl's had been traded -- 104 million s out of 112 million s outstanding.
What's next for Kohl's The 2021 rallies in GameStop and AMC eventually led those stocks to collapse, and the experience this time around for Kohl's and Opendoor is ly to be similar (something worth watching).
Kohl's challenges are real, in light of current trends. The retailer reported a net sales decline of 4, in this volatile climate.
In contrast, 1% in the first quarter, and it expects comparable sales of 4%-6% for the year, though it sees a modest fit. Moreover, Kohl's current ratio is just 1.
1, indicating the company may have trouble paying its bills in the future, especially if its cash flow is negative.
Moreover, As for the real estate, even if it does have purported value, unlocking it may be more difficult than it seems, as a similar bull case with Macy's didn't materialize, in today's financial world.
Investors should expect the volatility in Kohl's to continue, in this volatile climate. However, today's gain shouldn't be mistaken for any imvement in the.
The Author Jeremy Bowman is a contributing Motley Fool Stock Analyst covering publicly traded companies in the consumer discretionary, consumer goods, and sectors, as well as macroeconomic trends.
Prior to The Motley Fool, Jeremy held a number of positions, including newspaper reporter, restaurant manager, and teacher of English as a foreign language (remarkable data), in today's market environment.
Meanwhile, He holds a B. In English and Creative Writing from Colorado College and an MBA from American University.
Moreover, Fun fact: One of his Motley Fool headlines was briefly on Late Night with Stephen Colbert, amid market uncertainty.
Nevertheless, TMFHobo X @TMFBowman Jeremy Bowman has no position in any of the stocks mentioned, given the current landscape.
Moreover, The Motley Fool has positions in and recommends Goldman Sachs Group, in light of current trends. This analysis suggests that Motley Fool has a disclosure policy, given the current landscape.