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Retail Investors Drive Wild Swings in Opendoor, Kohl’s and Other Meme Stocks

Social media-fueled buying sent heavily shorted stocks soaring this month only to expose the disconnect between price spikes and weak corporate metrics.

FILE - The Krispy Kreme logo appears above its trading post on the floor of the New York Stock Exchange, Monday, May 9, 2016. (AP Photo/Richard Drew, File)
In this photo illustration, the logo of Kohl's Corporation is displayed on a smartphone screen, with a stock market chart of the company in the background.
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People walk outside of the New York Stock Exchange on July 23, 2025.

Overview

  • Opendoor shares climbed over 480% in July after EMJ Capital’s Eric Jackson touted it as a “100-bagger” but fell 10% on Wednesday, snapping a six-session streak of double-digit gains.
  • Kohl’s stock doubled intraday on Tuesday amid record retail buying and triggered multiple volatility halts before closing 38% higher, its largest one-day advance ever.
  • Other heavily shorted names including Krispy Kreme, GoPro and Rocket Lab saw sharp rallies this week as traders on Reddit and X.com coordinated buying to force short squeezes.
  • Trading volumes and options flows have signaled cooling momentum in recent sessions, with bid-ask imbalances pointing to growing volatility risks.
  • Targeted companies continue to report persistent losses and slipping sales, underscoring the speculative nature of the recent price surges.