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4w 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

Image
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