Kohl's Stock Up 33%. Locafy LCFY May Be Next Meme Stock

Forbes

23-07-2025

Suddenly, meme stocks — made famous by the 2021 GameStop saga — are back.
CHONGQING, CHINA - JUNE 08: In this photo illustration, the logo of GameStop Corp. is displayed on a ... More smartphone screen, with the company's iconic red and black branding visible in the background, on June 08, 2025, in Chongqing, China. GameStop is an American video game, consumer electronics, and gaming merchandise retailer that gained widespread attention during the 2021 retail investor frenzy, and continues to be a focal point in discussions around meme stocks and market volatility. (Photo illustration by) Getty Images
Shares of Kohl's and Opendoor Technologies have soared after Reddit and X hosted posts from investors aiming to drive up the heavily shorted shares, according to the Wall Street Journal .
Locafy Limited — a SaaS company 'specializing in proximity-based search engine optimization for local businesses,' notes RTT News — says its U.S. AI partnership will help boost revenue in the $600 billion SEO market.
Locafy — nearly 60% of its shares are sold short, according to the Journal — also faces risks including a going concern letter from its auditor, according to an SEC filing, liquidity issues, and a September 2025 deadline to retain its Nasdaq listing, according to a company release.
Suddenly, Meme Stocks are back.
For example, Opendoor Technologies — which traded at about $1 a share last week — has since soared 144%. On July 14, hedge-fund manager Eric Jackson said in an X post 'that his firm EMJ Capital has taken a position in the stock,' the Journal reported.
On July 22, shares of department store chain Kohl's — which has suffered from declining revenue and hosts about 50% short interest — took off. That's the day a subreddit forum user named Hot-Ticket9440 wrote of Kohl's 'Let's goo!!,' the Journal reported.
This raises the question: Where will the Meme Stock crowd go next?
One place to look could be Locafy Limited — whose shares have lost 91% since going public in March 2022. Locafy — which last published financial statements for its September 2024-ending quarter — posted a 28% decline in revenue to $518,000 while posting a $36,000 loss.
While Locafy also suffers from the other risks listed above, there is potential good news for bulls. For example, at the end of June Locafy stock soared 300% after reporting a partnership to provide 'digital business listings for approximately 10,000 U.S. end users,' RTT News reported.
While the shares have since lost about half their peak value, the company's 60% short interest suggests Meme Stock potential. I asked Locafy the following questions: Why is Locafy stock down 91% since March 2022?
What is the name of the U.S. company Locafy partnered with in June to make its service available to "approximately 10,000 U.S. users"?
How much additional revenue will this partnership generate for Locafy?
What are the terms of Locafy's partnership with Experience.com?
How much additional revenue will this partnership generate?
Why has Locafy not filed an interim balance sheet and not issued quarterly financial statements for the December 2024- or March 2025-ending quarters?
Why is almost 60% of Locafy's stock sold short?
I will update this post if I receive a reply from Locafy.
Founded in in 2009, Locafy is a digital publisher and SEO agency. With a market capitalization of $7.31 million, the company's digital properties include Hotfrog, AussieWeb, and SuperPages and its SEO Agency provides services for third-party digital properties.
Here are three tailwinds that could boost Locafy's revenue: Expanding SEO software market. The global SEO software market is forecast to grow at a 13.5% compound annual rate from $74.6 billion in 2024 to $154.6 billion by 2030, noted Precedence Research .
The global SEO software market is forecast to grow at a 13.5% compound annual rate from $74.6 billion in 2024 to $154.6 billion by 2030, noted . Local search demand. Since Locafy's strengths lie in local search optimization, the company could benefit from growth in this segment. That's because 46% of Google searches having local intent and 76% of consumers visiting a business within a day of conducting a local search, noted seoprofy .
Since Locafy's strengths lie in local search optimization, the company could benefit from growth in this segment. That's because 46% of Google searches having local intent and 76% of consumers visiting a business within a day of conducting a local search, noted . Recent strategic partnerships. In June 2025, investors responded favorably to Locafy's announcement of a strategic partnership with a leading U.S. online reputation and review management platform, potentially expanding its reach to approximately 10,000 end users in real estate and mortgage sectors, noted RTT News . In addition, Locafy announced in July a partnership to resell Experience.com's review management platform in the Asia Pacific market, according to a company release. Such partnerships have already generated more than '$35,000 in new monthly recurring revenue while reducing costs by $25,000,' reported Stock Titan . Why Locafy Stock Could Fall
In addition to the going concern qualification of Locafy's financial statements and the September 2025 deadline so submit a compliance plan to avoid delisting, Locafy is facing five powerful headwinds, including: Liquidity Concerns : The current ratio of 0.92 indicates potential difficulty in meeting short-term obligations. Combined with negative working capital and declining revenue, this creates significant financial stress.
: The current ratio of 0.92 indicates potential difficulty in meeting short-term obligations. Combined with negative working capital and declining revenue, this creates significant financial stress. Algorithm dependency. Locafy could struggle to produce good results for clients and maintain revenue if Google changes its search algorithm, noted my June Forbes post.
Locafy could struggle to produce good results for clients and maintain revenue if Google changes its search algorithm, noted my June post. Intense competition . With only 26 employees, Locafy's limited resources make it difficult for the company to compete with SEO software rivals such as SEMrush, Moz, and BrightLocal, notes CB Insights .
. With only 26 employees, Locafy's limited resources make it difficult for the company to compete with SEO software rivals such as SEMrush, Moz, and BrightLocal, notes . High volatility. With a beta of 1.82, Locafy's stock price is 82% more volatile than the S&P 500. The company's shares have fluctuated between 23% and 45% in a single day and the stock's 52-week trading range is a whopping $2.51 to $13.98, noted Stock Analysis .
With such a heavy short interest, how many posts along the lines of Skip Tradeless's July 22 X missive — '$OPEN has GameStop vibes written all over it' — would it take for shares of Locafy to rise?
Disclosure: I have no financial interest in the securities mentioned in this post.