Latest news with #shortSqueeze
Yahoo
5 days ago
- Business
- Yahoo
Opendoor Technologies Inc. (OPEN): It's A Pump, Not A Dump, Says Jim Cramer
We recently published . Opendoor Technologies Inc. (NASDAQ:OPEN) is one of the stocks Jim Cramer recently discussed. Opendoor Technologies Inc. (NASDAQ:OPEN) is a technology company that primarily enables home sellers to list their properties online for sale. The shares have gained 43% year-to-date despite having dropped by 29% in July. Opendoor Technologies Inc. (NASDAQ:OPEN)'s shares fell as the firm's speculative run fueled by Reddit users ran out. Cramer discussed the share price movement in detail: 'Promotion, that's what people are doing. Is it a dump? No it's a pump. And the goal is to get it to eight. And if you want to get involved with that, understand, that's a part of this chit game. This is a parlay. There are a lot of parlays going on. And, this one, look I don't want to dignify it, but I recognize it. It's a squeeze. It's a short squeeze. And people who are shorted, you better cover because they're gonna overrun you. Do I like this? It doesn't matter. It's not a like or dislike, that's like a silly, though I really dislike this, who. . .cares?' While we acknowledge the potential of OPEN 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. 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
Reuters
6 days ago
- Business
- Reuters
Opendoor, Kohl's resume rally as meme stock frenzy continues
July 24 (Reuters) - Shares of retail favorites Opendoor Technologies (OPEN.O), opens new tab and Kohl's (KSS.N), opens new tab 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 (DNUT.O), opens new tab gained 1.5%, while action camera maker GoPro (GPRO.O), opens new tab 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 (GPRO.O), opens new tab and Krispy Kreme (DNUT.O), opens new tab 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 (GME.N), opens new tab and cinema chain AMC (AMC.N), opens new tab, burning hedge funds that were on the other side of the trade.
Yahoo
6 days ago
- Business
- Yahoo
As Kohl's Surges in Wild Retail Rally, How Should You Play KSS Stock?
Kohl's (KSS) shares soared nearly 100% at one point on Tuesday as retail investors continued to flock into the American chain of department stores for no clear reason. The KSS price action resembles meme stock rallies of the past as the retailer didn't make any corporate announcement this morning, and no Wall Street analyst issued a bullish note in its favor either. More News from Barchart Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here? This Penny Stock Wants to Become the MicroStrategy of Dogecoin Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Kohl's stock has pared back at least half of the aforementioned gains since market open but is still trading at double its price in early April. Kohl's Stock Price Rally Today Is a Huge Red Flag Kohl's stock price surge in premarket on July 22 was accompanied by trading volume that eclipsed its daily average by almost 17 times. This kind of rally based purely on retail speculation and meme stock momentum is often viewed as a red flag because it lacks fundamental support and is prone to violent reversal, which is already unfolding. With nearly 48% of the float sold short, today's spike in KSS shares likely reflects a short squeeze rather than genuine investor confidence, especially since the retail chain continues to struggle with declining sales, leadership instability, and bearish Wall Street sentiment. Goldman Sachs Says KSS Shares Could Crash to $7 Investors should remain wary of investing in Kohl's shares also because the department store chain saw its net sales decline by 4.1% in the first quarter and expects comparable sales to fall by another 4%-6% in 2025. Citing this fundamental weakness, Goldman Sachs maintained its 'Sell' rating on KSS stock last month and announced a price target of $7, which indicates potential downside of more than 50% from here. In its research note, the firm also argued that higher tariffs under President Donald Trump could see Kohl's continue to struggle with profitability moving forward. Wall Street Agrees With Goldman Sachs on Kohl's Other Wall Street firms are just as bearish on Kohl's stock for the second half of 2025. Investors are recommended to pull out of KSS shares today as the consensus rating on the US retail chain currently sits at 'Moderate Sell' and the mean target of $7.35 signals potential for steep declines ahead. On the date of publication, Wajeeh Khan 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
Yahoo
6 days ago
- Business
- Yahoo
Kohl's Shares Shoot Up Over 105% as Meme Stock Dynamics Overwhelm Retail Issues
Kohl's Corp. on Tuesday went abruptly from beleaguered broadline retailer and beaten-down stock to the big gainer on Wall Street as traders took their cue from social media and dove in. Shares of Kohl's shot up as much as 105 percent to $21.39 shortly after the opening bell on Tuesday — enough that trading in the stock was briefly halted to cool the market down. More from WWD Kohl's Upping the Ante on Footwear During Critical Back-to-School Season Kohl's Narrows Q1 Net Loss, Beats Expectations Kohl's Plans Refinancing With $360M Offer of New Senior Secured Notes The stock settled at an increase of 37.6 percent to $14.34, leaving the company with a market capitalization of $1.6 billion. There was no corporate news driving the big run-up, but a confluence of market dynamics. Sixty-six percent of the stock's float was sold short as of the end of June, according to Yahoo Finance. That has two-thirds of the retailer's investors betting the stock will fall. But if the stock rises, short sellers will eventually have to take the loss and those losses grow as the stock goes higher, creating a rush for the exit as the short sellers are squeezed. Short squeezes can happen when a troubled company bounces back, catching doubters unawares. But Kohl's is also caught up in the world of meme trading, where investors on sites like Reddit rally around a name and sway the broader market. Shares of videogame retailer Game Stop famously rallied in 2021 as a grassroots campaign sought to squeeze out the shorts on the stock. For the company in question, meme stock bumps and short squeezes can be distracting, but have limited direct impact on operations. However, the episode does highlight the tough spot Kohl's is in as meme investors tend to go after weaker stocks where they can move the market. And Kohl's has been in something of a perpetual turnaround. Former chief executive officer Michelle Gass was dogged by activist investors before she left to take charge at Levi Strauss & Co. Tom Kingsbury stepped in for two years as CEO only to see his efforts fall flat. The next great hope, CEO Ashley Buchanan, was fired after three months in April, after engaging in vendor transactions with a romantic interest under unusual terms. Sales fell 4.1 percent in the first quarter and the company projected the top line would fall by 5 percent to 7 percent this year. Now Kohl's is looking to turn that trend around, find a permanent CEO and navigate tariffs and cautious consumers — all while ignoring a new kind of chaos in the stock market. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange
Yahoo
23-07-2025
- Business
- Yahoo
Watch These Kohl's Stock Price Levels as Retailer Becomes Latest Meme Play
Kohl's Corp. (KSS) shares soared Tuesday in the absence of news on the retailer, a move reminiscent of the meme stock frenzy of 2021. The shares likely received a boost from a short squeeze, given that nearly half of Kohl's float is held by short sellers. Tuesday's trading action echoed the meme-stock rally of four years ago, when Reddit users targeted heavily shorted retail stocks, including video game seller GameStop (GME) and movie theater chain AMC Entertainment (AMC). Kohl's shares closed 38% higher at $14.34 on Tuesday, its highest level since December. The stock, which more than doubled early in Tuesday's session, has now inched back into positive territory for 2025. Below, we take a closer look at Kohl's weekly chart and use technical analysis to identify major price levels that tactical traders will likely be watching. Volume Signals Meme-Driven Trading Activity After bottoming out in early April, Kohl's shares trended steadily higher before today's pop. It's worth pointing out that about 183 million shares traded hands by 2:20 p.m. ET on Tuesday, about 25 times the stock's 25-day moving average volume, indicating meme-driven trading activity. While the stock has rallied above the 50-week moving average, the relative strength index remains below overbought levels, providing ample room for further speculative buying. Let's identify three overhead areas on Kohl's chart to watch if the buying frenzy continues and also locate a key support level worth monitoring amid the potential for profit-taking. Overhead Areas to Watch The first overhead area to watch sits around $29, This location finds a confluence of resistance from the nearby 200-week MA and a trendline that connects multiple peaks on the chart between June 2020 and April last year. Buying above this area could spark a rally toward $45. The shares may run into selling pressure at this level near a series of troughs on the chart stretching from August 2019 to January 2022. The next higher area to track lies at $64. A surge into this region would likely face significant resistance near several peaks that formed on the chart between March 2021 and April 2022. Key Support Level Worth Monitoring During volatile profit-taking events in the stock, investors should monitor the $11 level. Tactical traders could see this location a high probability 'buy the dip' area near the 2020 pandemic low and a period of brief consolidation in February this year. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia
