Core Viewpoint - Kohl's Corporation is expected to report declines in both revenue and earnings for the second quarter of fiscal 2025, with sales estimated at $3.48 billion, reflecting a 6.9% decrease year-over-year, and earnings per share projected at 33 cents, down 44.1% from the previous year [1]. Group 1: Earnings Performance - The Zacks Consensus Estimate for Kohl's quarterly sales is currently pegged at $3.48 billion, indicating a 6.9% decrease from the year-ago quarter [1]. - The consensus mark for earnings for the fiscal second quarter has remained stable at 33 cents a share, reflecting a year-over-year plunge of 44.1% [1]. - Kohl's has delivered an average earnings surprise of 18.8% over the trailing four quarters, with a notable earnings surprise of 40.9% in the last reported fiscal quarter [2]. Group 2: Factors Impacting Performance - Ongoing macroeconomic uncertainty and a cautious consumer environment are significant challenges for Kohl's, particularly affecting its digital business and home category sales [3]. - The company is facing external headwinds such as shifting consumer behavior and unpredictable tariff developments, leading to a projected comparable sales decline of 5.6% in the upcoming quarter [4]. - Despite these challenges, Kohl's has made progress in underpenetrated categories like home decor, gifting, and baby products, which may provide some cushion in the fiscal second quarter [5]. Group 3: Strategic Initiatives - Kohl's is focusing on strategic growth initiatives, including enhancing customer experience, optimizing inventory, and effective cost management, which is expected to result in a 6.1% reduction in SG&A costs for the second quarter [6]. - The strategic partnership with Sephora is anticipated to have a positive impact on performance in the upcoming quarter [5]. Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for Kohl's, as it has an Earnings ESP of -20.17% and a Zacks Rank of 3, indicating a neutral outlook [7].

After winning the favor of retail investors, Kohl's has a chance to raise some much-needed cash, says @andreafelsted (via @opinion) https://t.co/tNWlyCEqSQ ...

Group 1 - The article discusses the emergence of a new class of meme stocks, including Kohl's, GoPro, and Krispy Kreme, which have experienced volatile trading reminiscent of the GameStop and AMC rallies in 2021 [1] - Meme stocks are characterized by sharp price swings not based on their underlying fundamentals, and they are typically considered cheap, with Kohl's share price down approximately 40% over the past year [1] - Recognition of these companies plays a crucial role in the spread of the meme narrative, making it easier for traders to rally around well-known brands compared to lesser-known stocks [2] Group 2 - A significant portion of the outstanding shares of these meme stocks are sold short, with approximately 47% of Kohl's, 28% of Krispy Kreme, and 9% of GoPro's shares being shorted [3] - The process of shorting involves investors borrowing shares and selling them, hoping to buy them back at a lower price to profit from the difference [3] - When the price of a heavily shorted stock rises, short sellers are forced to buy back shares to limit their losses, creating a feedback loop that can inflate the stock price [4][5]

Meme Stock Phenomenon - Meme stocks experience volatile price swings unrelated to business fundamentals, often involving heavily shorted, cheap stocks [4] - Retail investors leverage social media to drive up stock prices, challenging institutional investors [3][8] - GameStop's surge, fueled by Reddit users, demonstrated the potential for massive gains and losses, impacting hedge funds [9][10] - Kohl's, like other recognizable brands, became a target for meme stock activity due to its household name and high short interest [11][12] Kohl's Business Performance - Kohl's stock experienced a 100% surge due to meme stock activity, despite underlying business performance being just "okay" [1] - From July 2021 to July 2025, Kohl's stock price decreased by approximately 85% [17] - Between 2019 and 2024, beauty and accessory sales increased by 38% due to the Sephora partnership, but overall sales decreased by 18.5%, and excluding beauty, sales decreased by around 26% [19] - Kohl's has lost 1.3 million customers over five years to competitors [17] Risks and Outlook - Short selling involves borrowing and selling stock, hoping to buy it back at a lower price, but losses can be exponential if the price rises [5][6] - Wild stock swings can distract from Kohl's need to focus on day-to-day operations [21] - While not in immediate danger of bankruptcy, Kohl's faces challenges and needs to experiment with different strategies under an interim CEO [18][19][20] - Predicting the next meme stock is difficult, but companies with household names and high short interest are potential candidates [14][16]

Group 1 - The resurgence of meme stocks has created a dilemma for professional investors, weighing the option to capitalize on retail trading enthusiasm against the risk of a market bubble warning signal [1] - Stocks like Opendoor Technologies Inc. and Kohl's Corporation have seen significant price movements, with major indices like the S&P 500 and Nasdaq 100 reaching historical highs since early April [1] - FINRA data indicates that margin debt for purchasing stocks has surpassed levels seen during the tech bubble, reaching an all-time high [1] Group 2 - Signs of market fatigue are emerging, as the latest meme stock rally has shown a quick loss of momentum, with Bitcoin also retreating from its historical peak [3] - Some Wall Street trading desks are advising clients to purchase insurance at discounted prices to guard against potential losses, as current market valuations appear significantly high [3] - The S&P 500's expected price-to-earnings ratio is nearing 23 times, well above the 10-year average of approximately 18 times, indicating a substantial disconnect from fundamentals [3] Group 3 - The current speculative frenzy is reminiscent of the January 2021 meme stock surge, driven by retail investors using government stimulus checks and zero-commission trading platforms [7] - The trading volume for Opendoor reached 1.8 billion shares on its busiest day, accounting for nearly 10% of total U.S. stock market volume, highlighting the amplified speculative momentum [7] - The macroeconomic backdrop is different this time, with rising interest rates and expectations of potential Federal Reserve rate cuts later this year, which could further support the stock market [7] Group 4 - Current market conditions are still digesting the impacts of tariffs imposed by the Trump administration, but most trade agreements have yielded better-than-expected results since early April [7] - Inflation appears to be under control, and earnings growth remains stable, which could provide a foundation for continued market performance [7] - If the Federal Reserve does not cut rates this year or if tariffs and inflation undermine other positive factors, the market may face a reassessment [7]

Core Viewpoint - Kohl's stock experienced a significant surge due to meme-stock trading and a short squeeze, with a 33.5% increase over the last week, while the S&P 500 rose only 1.5% [1][4]. Group 1: Stock Performance - Kohl's share price is still down approximately 9% in 2025 and 56% over the last three years despite the recent rally [2]. - The stock's surge was driven by its popularity among meme-stock traders, leading to a moderate short squeeze as short sellers were forced to buy back shares [4]. Group 2: Business Outlook - The company's performance outlook remains challenging, with guidance indicating a sales decline of 5% to 7% for the year and same-store sales projected to fall between 4% and 6% [5]. - The midpoint of Kohl's earnings target suggests a potential annual decline in profitability of around 64% [5]. Group 3: Investment Sentiment - Some investors are speculating that Kohl's commercial real estate holdings may be undervalued, although this investment thesis carries risks [6].

Core Viewpoint - The resurgence of meme stocks is driven by retail traders, reminiscent of the 2021 craze, with potential for even larger rallies as they mobilize online and disregard Wall Street skepticism [1][6]. Group 1: Retailer Performance - Retailers such as Kohl's, GoPro, Wendy's, and Krispy Kreme experienced significant stock rallies, with Kohl's up 32%, GoPro up 66%, and Krispy Kreme up 41% over the week [6]. - American Eagle Outfitters saw a 10% increase in shares after actress Sydney Sweeney was announced as the face of its marketing campaign [3]. Group 2: Market Dynamics - The current market environment, characterized by high trading volumes and speculative behavior, is conducive to meme stock rallies, similar to the conditions during the Covid era [6][10]. - The meme-stock phenomenon is often detached from traditional economic fundamentals, with investors supporting brands for emotional or ideological reasons rather than financial metrics [7][10]. Group 3: Community Influence - The wallstreetbets forum empowers retail traders to share research and ideas, leading to a decentralization of financial analysis and investment power [5]. - The community's influence is evident as retail traders push stock prices significantly, demonstrating the power of collective action [5]. Group 4: Cultural Impact - The meme culture surrounding stocks, such as Wendy's, illustrates how humor and social media can drive investment decisions, often independent of market fundamentals [8][10]. - The evolving landscape of finance, including the rise of blockchain and AI trading, reflects a shift in how retail traders engage with the market [4].

Core Viewpoint - The DORK meme stocks, representing a new wave of retail speculation, have shown significant volatility, with initial surges followed by sharp declines, indicating a speculative bubble rather than a reflection of strong fundamentals [1][2]. Group 1: DORK Meme Stocks Performance - DORK stocks, including Opendoor, Kohl's, Krispy Kreme, and GoPro, experienced dramatic price movements, with Opendoor rising 43% and GoPro soaring 73% before facing declines of over 20% and 14% respectively [1][2]. - Retail investors have shown a strong speculative interest, with net purchases of $155.3 billion in stocks in the first half of the year, the highest in at least a decade [1]. Group 2: Financial Performance of DORK Stocks - The financial performance of DORK stocks is generally weak, with Opendoor reporting a 26% year-over-year revenue decline and a net loss of $392 million, while GoPro saw a 20% revenue drop and a net loss of $432 million [2]. - Analysts describe these companies as fundamentally impaired, indicating that the current trading behavior is driven more by speculation than by financial health [2]. Group 3: Market Dynamics and Retail Investor Behavior - The DORK phenomenon marks a shift in meme stocks from a rebellious symbol to a regular market element, with the current trading activity lasting only one to two days compared to previous trends [3]. - The options market's role in this recent surge is less pronounced, with only 21% of the top 100 S&P 500 stocks showing bullish options activity, compared to over half during the 2021 meme stock craze [3]. Group 4: Diversification of Speculative Investments - Retail speculative funds are diversifying into various risk assets beyond meme stocks, with significant increases in high-yield bonds and cryptocurrency investments, reflecting a shift in market sentiment [4]. - The popularity of platforms for sports betting and complex stock betting has contributed to a more widespread speculative environment, reducing the focus on individual meme stocks [4].

Core Viewpoint - The resurgence of "Meme stocks" is driven by social media discussions and a surge of retail investors, leading to significant price volatility without fundamental changes in the companies involved [1][4]. Group 1: Characteristics of Meme Stocks - Meme stocks often share common traits, including the ability to spark collective imagination among internet users and gaining traction from influential retail investors on social media [2]. - These stocks typically have high short interest, indicating that professional investors are betting against them, and they often have lower share prices [3]. Group 2: Market Environment Comparison - The current market environment in 2025 differs fundamentally from that of 2021, with high interest rates and uncertain tariff policies, which should suppress risk appetite; however, speculative trading has become active again [4]. - The number of stocks involved in the current wave is fewer than in 2021, but the volatility is more pronounced and the price increases are short-lived [4]. Group 3: Trading Dynamics - For instance, Opendoor's stock surged by 43% on July 21, with a trading volume of 1.9 billion shares, accounting for about 10% of total U.S. stock trading that day [4]. - The surge in stocks like Kohl's and Krispy Kreme was driven by short squeeze dynamics, where short sellers are forced to buy back shares, pushing prices higher [4]. Group 4: Risks and Ethical Concerns - Trading in Meme stocks carries high risks as the motivations for buying are often unrelated to the companies' fundamentals, leading to significant volatility [5]. - The ethical implications of social media influencers affecting stock prices are debated, with concerns about undisclosed information regarding their holdings and motivations [9]. Group 5: Sustainability of Meme Stock Trends - The sustainability of Meme stock trends relies on continuously attracting new investors, which has proven difficult in the current market environment compared to the pandemic period [10]. - Historical patterns show that the price surges of Meme stocks are often short-lived, as evidenced by the rapid decline of stocks like Faraday Future [10].

Group 1: Stock Performance - Kohl's Corp (KSS) stock surged 8.8% on Monday and 37.6% on Tuesday, but later fell 15.2% to $12.18, returning to negative territory for the year [1] - Krispy Kreme Inc (DNUT) shares rose 6.9% to $4.41, following a 26.8% increase the previous day, although still down 55.6% year to date [3] - GoPro Inc (GPRO) increased 26.3% to $1.73, building on a 41% rise from the previous day, and reached 52-week highs [5] Group 2: Options Activity - KSS experienced 88,000 calls and 88,000 puts exchanged, which is 3.6 times the average daily amount, with new positions opening at the most-active weekly 7/25 12-strike put [7] - DNUT saw 148,000 calls and 78,000 puts, 34.5 times the average daily options volume, with new positions opening at the popular August 5 call [7] - GPRO had 87,000 calls and 55,000 puts exchanged, 25.3 times the average daily volume, with new positions opening at the August 2 and 3 calls [7] Group 3: Short Selling - KSS and DNUT have 49% and 31% of their total available float sold short, respectively, indicating significant short squeeze potential [8] - Nearly 10% of GPRO's total available float is sold short, also suggesting potential for a short squeeze [8]