Kohl's shares surge 105% in meme stock rally, settle 39% higher with retail trader-driven volatility

Kohl’s Corp., a Fortune 500 retailer, has become the latest focal point in the volatile world of meme stocks, with its shares experiencing a meteoric rise followed by a sharp correction. The stock surged as much as 105% in early trading on July 2, triggering a market halt due to volatility, before settling with a 39% gain for the day [1]. The rally, fueled by coordinated efforts on platforms like Reddit’s r/WallStreetBets, marked Kohl’s largest one-day jump in history, driven by retail investors betting on a short squeeze [2]. Over the following weeks, the stock continued to fluctuate dramatically, peaking with a near-40% increase on June 30 and a 25% rise on July 1 as social media buzz intensified [3][4]. By late July, however, shares had retreated to pre-rally levels, reflecting the typical lifecycle of a meme stock.

The surge drew comparisons to past meme stock phenomena, such as GameStop and Bed Bath & Beyond, despite Kohl’s weak fundamentals. The retailer, which has long struggled with declining sales and a shift in consumer preferences toward online shopping, saw its stock price briefly more than double in early July, defying its historical performance [5]. Analysts attributed the momentum to a combination of retail investor enthusiasm and heavy short interest, with some traders framing the move as a coordinated effort to challenge institutional betting against the stock. “This is less about Kohl’s financial health and more about the psychology of retail traders rallying around a symbol,” one market observer noted [6].

The rally raised questions about the sustainability of such surges. Unlike traditional value-driven investing, meme stock movements are often ephemeral, driven by social media trends rather than corporate performance. Kohl’s stock, for instance, closed at a 37% gain on July 6 but had already lost nearly half its post-rally value by late July [7]. This pattern underscores the risks for investors chasing speculative gains, as sentiment can shift rapidly when retail enthusiasm wanes.

Broader market implications are also evident. The Kohl’s episode highlights the growing influence of retail investors in shaping stock prices, even for well-established companies. While institutional analysts remain skeptical of the long-term benefits for Kohl’s, the retailer’s sudden spotlight has sparked debates about the role of social media in financial markets and the regulatory challenges posed by decentralized trading communities [8].

The event also reflects the cyclical nature of meme stock activity. Following the GameStop frenzy in early 2021, similar patterns have emerged in other undervalued stocks, with Kohl’s joining the ranks of companies like Bed Bath & Beyond and Krispy Kreme as beneficiaries of viral trading [9]. However, these rallies often lack a foundation in earnings or strategic growth, making them particularly volatile and susceptible to regulatory scrutiny.

Sources:

[1] [Fortune](https://fortune.com/2025/07/23/kohls-meme-stock-retail-trading-shares-double-reddit-wallstreetbets/)

[2] [Sherwood](https://sherwood.news/markets/yesterday-was-kohls-biggest-gain-in-the-stocks-history/)

[3] [Yahoo](https://finance.yahoo.com/news/kohls-stock-jumps-meme-stock-142639369.html)

[4] [MarketScreener](https://uk.marketscreener.com/news/kohl-s-shares-surge-as-retailer-gets-meme-treatment-ce7c5cdddb8ffe25)

[5] [AlphaSpread](https://www.alphaspread.com/market-news/stock-movements/kohls-stock-soars-amid-surging-retail-investor-interest)

[6] [Mitrade](https://www.mitrade.com/insights/news/live-news/article-8-978006-20250722)

[7] [Yahoo](https://finance.yahoo.com/news/kohl-shares-shoot-over-105-202746874.html)

[8] [The Economic Times](https://m.economictimes.com/news/international/us/kohls-moon-mission-stock-jumps-25-as-reddit-hype-triggers-massive-rally/articleshow/122839851.cms)

[9] [US News & World Report](https://money.usnews.com/investing/news/articles/2025-07-23/highly-shorted-krispy-kreme-gopro-jump-as-meme-stock-rally-continues)