It felt like déjà vu on Wall Street today.
Investors were instantly reminded of the wild days of 2021 when meme stocks like GameStop and AMC threw the market into chaos — all because Kohl’s, of all companies, saw its stock price more than double overnight.
From Struggles to Surges — But Nothing’s Changed Internally
Kohl’s hasn’t exactly had a great year.
Sales have been sliding, its leadership has been rocked by scandal, and dozens of stores have shut down.
Yet somehow, the company’s stock, which had been stuck near $9 for weeks, suddenly spiked past $19 during early Tuesday trading.
While it has since cooled off to around $14, that still marks a jaw-dropping 40% gain in a single day.
Experts Say the Surge Isn’t Backed by Reality
Retail analysts aren’t buying the hype. Neil Saunders of GlobalData was blunt in his assessment, telling DailyMail.com, “What has Kohl’s done to earn this acceleration? Nothing at all.”
He emphasized that Kohl’s business model, strategy, and financials look exactly the same as they did last week — struggling and uncertain.
So what’s driving this spike? Probably speculation, not substance.
A Brutal Year for Kohl’s Before the Surprise Rally
To understand how strange this stock bump really is, you just have to look at Kohl’s recent history.
In March, company executives delivered bad news: sales for the year were expected to drop by 5% to 7%.
The stock quickly plunged from $12 to just over $8.
Then came more drama in May, when CEO Ashley Buchanan was abruptly fired.
An internal probe claimed he was involved in a “highly unusual” romantic relationship with a vendor — a scandal that rocked the company from the inside.
At the same time, Kohl’s was rapidly closing stores, with 27 locations shuttered in March alone.
All signs pointed toward a company in trouble — not one poised for a stock surge.
Kohl’s Trying to Regroup — But Still Losing Ground
Even amid the chaos, the retailer has been trying to turn things around.
But according to Saunders, those efforts haven’t been enough to stop Kohl’s from losing market share and struggling to stay relevant in a cutthroat retail landscape.
He summed it up like this: “It’s another meme stock situation.”
The Ghost of 2021’s Meme Stock Frenzy Returns
If you remember the wild stock market ride of 2021, this all feels familiar.
Back then, online communities on Reddit, especially r/WallStreetBets, rallied behind struggling companies like GameStop, AMC, and Bed Bath & Beyond.
Those retail investors — often regular people — piled into stocks that big hedge funds were betting against.
That wave of coordinated buying triggered massive short squeezes and pushed stock prices to ridiculous heights.
But most of those companies couldn’t live up to the hype.
Eventually, their stocks crashed and the businesses behind them collapsed under financial pressure.
Analysts Warn New Investors: Don’t Get Burned Again
Bret Kenwell, a U.S. investment expert at eToro, echoed a warning we’ve heard before: jumping into meme stocks is risky business.
The price swings are unpredictable, and those who chase the hype often end up with losses.
“Chasing can result in being burned,” he cautioned.
Saunders agreed and pointed to the downfall of Bed Bath & Beyond as a harsh lesson.
That company eventually filed for bankruptcy and closed all its stores, leaving hopeful investors empty-handed.
“This Is Just Stock Market Game-Playing”
In the end, most analysts seem to agree: this is less about Kohl’s actual business performance and more about traders playing games.
Saunders put it plainly: “The share price increase is all about game-playing with stocks.
At the end of the day, business performance and the reality of the balance sheet win.”
Kohl’s Keeping Quiet for Now
Despite the buzz, Kohl’s hasn’t made any public comments about the sudden surge or investor enthusiasm.
For now, it looks like they’re letting the numbers — and the market speculation — speak for themselves.