Latest news with #meme stock
Yahoo
a day ago
- Business
- Yahoo
Kohl's Corporation (KSS) Looks Like A Meme Stock, Says Jim Cramer
We recently published . Kohl's Corporation (NYSE:KSS) is one of the stocks Jim Cramer recently discussed. Kohl's Corporation (NYSE:KSS) is one of the most well-known retailers in America. It is also a frequent feature of Cramer's morning show, with the CNBC TV host initially criticizing the firm and then taking a lighter tone. This time, he commented on Kohl's Corporation (NYSE:KSS)'s share price performance during the recent resurgence of social-media-driven bets termed as the 'meme stock' mania: 'I didn't have Kohl's. Which looks to be a meme stock. It's up very big. . . .they had news, the quarter was just okay. Just okay. Top 20 Brands Among Gen Z in the US by Mindshare 'But I just look at Kohl's and I think, look a few minutes ago before this day started, they were looking bad. They're now looking great. They do have a lot of borrowing. I mean this is not a clean balance sheet by any means. Not at all. While we acknowledge the potential of KSS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
4 days ago
- Business
- Yahoo
Why GoPro (GPRO) Stock Is Down Today
What Happened? Shares of action camera company GoPro (NASDAQ:GPRO) fell 6.6% in the morning session after the recent speculative rally, fueled by its newfound status as a 'meme stock,' appeared to lose momentum. This decline followed a period of intense volatility for the action-camera maker. The stock had been labeled a 'meme stock'—a term for shares that gained popularity with retail investors, leading to price movements often disconnected from a company's financial performance. In the days prior, GoPro's stock had surged by as much as 98% in just four trading days, a rally that occurred without any positive company-specific news. Reports noted this frenzy had pushed the stock into 'overbought' territory, signaling a potential pullback was likely as the speculative momentum waned. This volatility stood in contrast to the company's underlying business challenges, including a history of declining revenues. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy GoPro? Access our full analysis report here, it's free. What Is The Market Telling Us GoPro's shares are extremely volatile and have had 57 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 5 days ago when the stock gained 19.8% as the company became one of the latest companies caught up in a "meme stock" rally. The stock's dramatic climb occurred despite a lack of any specific news or press release from the company itself. The movement was attributed to a resurgence of interest from retail investors, who often coordinate on social media platforms to buy shares of heavily shorted companies. This tactic, known as a "short squeeze," can drive share prices up rapidly. GoPro's stock characteristics, including a low share price and a notable percentage of its shares being shorted, made it an attractive target for this type of trading activity. The surge was accompanied by extremely heavy trading volume, with tens of millions of shares changing hands, far exceeding its usual activity. GoPro is up 25.9% since the beginning of the year, but at $1.39 per share, it is still trading 16.1% below its 52-week high of $1.65 from November 2024. Investors who bought $1,000 worth of GoPro's shares 5 years ago would now be looking at an investment worth $269.98. 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. Sign in to access your portfolio
Bloomberg
4 days ago
- Business
- Bloomberg
Opendoor Postpones Shareholder Vote After Meme-Stock Rally Helps Delay Delisting Risk
Opendoor Technologies Inc., the home-flipper turned meme stock, is postponing a shareholder vote on a reverse stock split following the recent run-up in the company's shares. Opendoor had previously scheduled a special meeting for Monday after Nasdaq Inc. notified the company in May that it could be delisted for failing to maintain a stock price of $1 or more.
Yahoo
5 days ago
- Business
- Yahoo
Return of Meme Stock Mania Has Traders on Alert for Market Froth
(Bloomberg) -- The reemergence of meme stock mania last week has professional investors facing a quandary: ride the excitement of retail traders or take it as the latest warning sign that the frothy markets are due for a pullback. Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy The speculative stocks caught up in the frenzy this week, like Opendoor Technologies Inc. and Kohl's Corp., gave up some of their gains as the week went on, but most are still trading at their highest levels in months. The broader S&P 500 Index and Nasdaq 100 Index are doing even better, sitting at all-time highs after charging back from the early April selloff set off by President Donald Trump's tariff announcements. There are indicators that investors are abandoning restraint and betting on further gains. The amount that investors are borrowing to buy stocks on the New York Stock Exchange, known as margin debt, has exceeded the tech-bubble highs to reach a new record, according to data from the Financial Industry Regulatory Authority. But signs of fatigue are creeping in. The latest meme stock rally seemed to lose steam after just a few days, and Bitcoin, one of the most visible symbols of the speculative fever, has recently fallen back from its record highs. Some Wall Street trading desks have been urging clients to scoop up discounted protection against possible losses. The current run has stretched valuations, with the S&P 500 trading at nearly 23 times forward earnings, well above the ten-year average of around 18, signaling that stocks have gotten significantly more expensive. 'I'm seeing it and just starting to just tuck my horns in a little bit,' said Eric Diton, president and managing director of the Wealth Alliance. 'I'm longer-term bullish, but I'm just short-term cautious. I really think we're overdue for some kind of a pullback again because of the excessive speculation.' For help in navigating the volatility, some market watchers are looking for comparisons with the most famous meme stock moment back in January 2021, when GameStop Corp. and AMC Entertainment Corp. captured the world's attention. That buying was fueled by retail traders who were flush with stimulus checks and stuck at home, swapping tips on social media. It came after a banner year in the markets, in 2020, but ended up being only the beginning of an even bigger rally in 2021, when the S&P 500 rose another 27%. There was, though, eventually a reckoning in 2022 when the index plunged 19%, notching the worst yearly performance since the great financial crisis. 'With all the bull market euphoria and risk appetite, they tend to go on until they don't, so it's notoriously difficult to predict when it turns,' Victor Haghani, chief investment officer of Elm Wealth and a founding partner of Long Term Capital Management, said. 'We know we're in it, but to me it does not signal whether it's near the end or not near the end. It's the question of when, not if, the market goes back to a more sensible level.' There were many echoes of the 2021 frenzy last week as retail traders sought out small, often troubled companies that had been heavily shorted by hedge funds. Some of the factors behind GameStop's ascent have only grown more prominent as zero commission trading and short-term options have become more widely available and popular. That was reflected in the volume of trading last week. On the busiest day, 1.8 billion shares of Opendoor traded, accounting for nearly 10% of all US stock market volume. Back in 2021, at the peak, a more modest 800 million shares of GameStop changed hands, even though the trading in both stocks was off a similarly small base, according to data compiled by Bloomberg. This time around, though, the excitement appears to have come and gone more quickly and the macroeconomic backdrop is decidedly different. Interest rates are much higher, which leaves investors anticipating that the Federal Reserve will lower its benchmark rate later this year, a move that could give the rally further momentum. 'We're at a place now where the Fed is likely to be cutting interest rates going forward despite the fact that we have high valuations, which tells me valuations might even go higher,' said Don Calcagni, chief investment officer at Mercer Advisors Inc. 'If the Fed brings down interest rates, that's going to be a very nice tailwind for equities broadly.' While the markets are contending with the higher tariff levels put in the place by the Trump administration, the deals with most countries have ended better than was feared back in April. On top of that, inflation appears to be in check and earnings growth intact. 'The meme stuff is kind of disturbing, you know, there's no way around that. But I think the risk is that people focus too much on that,' said Alec Young, chief investment strategist at Mapsignals. 'Markets don't trade on good or bad, they trade on better or worse, and on the trade news every deal is better than what was priced in early April.' Of course, if the Fed doesn't cut interest rates this year or if any of the other market tailwinds falter as a result of tariffs or inflation, markets could see a pullback. 'That's when the market's going to have to really do some reassessment,' Calcagni said. Still, a brief pullback of a few percentage points could be a sign of a healthy market and even give investors opportunities to buy stocks at a discount. 'I'd view any near-term pullback as very buyable against the current backdrop,' Ross Mayfield, investment strategist at Baird, said. --With assistance from Norah Mulinda. It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Burning Man Is Burning Through Cash Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme A Rebel Army Is Building a Rare-Earth Empire on China's Border Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P.
Yahoo
5 days ago
- Business
- Yahoo
Return of Meme Stock Mania Has Traders on Alert for Market Froth
(Bloomberg) -- The reemergence of meme stock mania last week has professional investors facing a quandary: ride the excitement of retail traders or take it as the latest warning sign that the frothy markets are due for a pullback. Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy The speculative stocks caught up in the frenzy this week, like Opendoor Technologies Inc. and Kohl's Corp., gave up some of their gains as the week went on, but most are still trading at their highest levels in months. The broader S&P 500 Index and Nasdaq 100 Index are doing even better, sitting at all-time highs after charging back from the early April selloff set off by President Donald Trump's tariff announcements. There are indicators that investors are abandoning restraint and betting on further gains. The amount that investors are borrowing to buy stocks on the New York Stock Exchange, known as margin debt, has exceeded the tech-bubble highs to reach a new record, according to data from the Financial Industry Regulatory Authority. But signs of fatigue are creeping in. The latest meme stock rally seemed to lose steam after just a few days, and Bitcoin, one of the most visible symbols of the speculative fever, has recently fallen back from its record highs. Some Wall Street trading desks have been urging clients to scoop up discounted protection against possible losses. The current run has stretched valuations, with the S&P 500 trading at nearly 23 times forward earnings, well above the ten-year average of around 18, signaling that stocks have gotten significantly more expensive. 'I'm seeing it and just starting to just tuck my horns in a little bit,' said Eric Diton, president and managing director of the Wealth Alliance. 'I'm longer-term bullish, but I'm just short-term cautious. I really think we're overdue for some kind of a pullback again because of the excessive speculation.' For help in navigating the volatility, some market watchers are looking for comparisons with the most famous meme stock moment back in January 2021, when GameStop Corp. and AMC Entertainment Corp. captured the world's attention. That buying was fueled by retail traders who were flush with stimulus checks and stuck at home, swapping tips on social media. It came after a banner year in the markets, in 2020, but ended up being only the beginning of an even bigger rally in 2021, when the S&P 500 rose another 27%. There was, though, eventually a reckoning in 2022 when the index plunged 19%, notching the worst yearly performance since the great financial crisis. 'With all the bull market euphoria and risk appetite, they tend to go on until they don't, so it's notoriously difficult to predict when it turns,' Victor Haghani, chief investment officer of Elm Wealth and a founding partner of Long Term Capital Management, said. 'We know we're in it, but to me it does not signal whether it's near the end or not near the end. It's the question of when, not if, the market goes back to a more sensible level.' There were many echoes of the 2021 frenzy last week as retail traders sought out small, often troubled companies that had been heavily shorted by hedge funds. Some of the factors behind GameStop's ascent have only grown more prominent as zero commission trading and short-term options have become more widely available and popular. That was reflected in the volume of trading last week. On the busiest day, 1.8 billion shares of Opendoor traded, accounting for nearly 10% of all US stock market volume. Back in 2021, at the peak, a more modest 800 million shares of GameStop changed hands, even though the trading in both stocks was off a similarly small base, according to data compiled by Bloomberg. This time around, though, the excitement appears to have come and gone more quickly and the macroeconomic backdrop is decidedly different. Interest rates are much higher, which leaves investors anticipating that the Federal Reserve will lower its benchmark rate later this year, a move that could give the rally further momentum. 'We're at a place now where the Fed is likely to be cutting interest rates going forward despite the fact that we have high valuations, which tells me valuations might even go higher,' said Don Calcagni, chief investment officer at Mercer Advisors Inc. 'If the Fed brings down interest rates, that's going to be a very nice tailwind for equities broadly.' While the markets are contending with the higher tariff levels put in the place by the Trump administration, the deals with most countries have ended better than was feared back in April. On top of that, inflation appears to be in check and earnings growth intact. 'The meme stuff is kind of disturbing, you know, there's no way around that. But I think the risk is that people focus too much on that,' said Alec Young, chief investment strategist at Mapsignals. 'Markets don't trade on good or bad, they trade on better or worse, and on the trade news every deal is better than what was priced in early April.' Of course, if the Fed doesn't cut interest rates this year or if any of the other market tailwinds falter as a result of tariffs or inflation, markets could see a pullback. 'That's when the market's going to have to really do some reassessment,' Calcagni said. Still, a brief pullback of a few percentage points could be a sign of a healthy market and even give investors opportunities to buy stocks at a discount. 'I'd view any near-term pullback as very buyable against the current backdrop,' Ross Mayfield, investment strategist at Baird, said. --With assistance from Norah Mulinda. It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Burning Man Is Burning Through Cash Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme A Rebel Army Is Building a Rare-Earth Empire on China's Border Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
