Shares of U.S. department store chain Kohl's surged more than 100% on Tuesday, making it one of the most actively traded stocks on retail trading platforms. Trading in the stock was temporarily halted multiple times due to extreme volatility.
The dramatic increase in share price was not attributed to any specific corporate announcements or major stock ratings. Instead, it was fueled by a resurgence of 'meme stock' euphoria, with significant chatter observed on social media forums like Reddit's Wall Street Bets.
Kohl's, identified as a heavily shorted stock with approximately 50% of its outstanding shares sold short, became a target for retail investors aiming to trigger a short squeeze. This phenomenon, also seen with other companies like Opendoor Technologies, reflects speculative trading rather than fundamental business changes.
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