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6d ago

Retail Traders Fuel July Surge in Kohl’s, Krispy Kreme and GoPro

Heavy short interest coupled with online hype has driven extreme swings without fundamental support

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Options trader Matthew Hefner works on the floor of the New York Stock Exchange, Tuesday, July 29, 2025. (AP Photo/Richard Drew)
FILE - In this file photo, a GameStop sign is displayed above a store in Urbandale, Iowa, on Jan. 28, 2021. (AP Photo/Charlie Neibergall, File)

Overview

  • Shares of Kohl’s, Krispy Kreme, GoPro and Opendoor climbed sharply in late July despite weak sales and low valuations
  • FactSet data shows about 47% of Kohl’s, 28% of Krispy Kreme and 9% of GoPro shares are sold short, amplifying pressure on short sellers
  • Retail investors on Reddit and YouTube forums have coordinated buying to trigger feedback loops and force short-covering
  • This latest episode follows the original GameStop frenzy in 2021 and a revival in early 2024 that highlighted the risks of sentiment-driven rallies
  • Market analysts warn that these hype-fueled gains can reverse quickly and caution companies against mistaking transient trading booms for sustainable growth