Damian J. Troys
NEW YORK (AP) — As stock markets are pushed into record territory and bargains become harder to find, investors are once again hoping for a quick score from some of Wall Street beaten companies.
The latest so-called meme stocks are department store Coles, which surged this week, and Opendoor Technologies, an online-based real estate company that surged this month. Both companies are struggling in their respective sectors.
Wall Street defines meme stocks as stocks that gain massive popularity and trading volumes driven primarily by social media hype and online communities. Think GameStop and AMC Entertainment in 2021, and some instances after that.
In many cases, meme stocks are initially the target of investors who bet on “short sellers” or stocks. As other investors start buying and raising the price of stocks, it can encourage people who bet on stocks to buy more shares to mitigate their losses.
Coles
Kohl’s, which operates 1,600 stores nationwide this week, is up almost 50%. We are tackling many challenges, including CEO revolving doors and declining sales.
In May, the company announced it had ended its new CEO Ashley Buchanan after the investigation determined that the retailer had directed it to engage in vendor transactions with private conflicts of interest. Kohl’s nominated Michael Bender has been appointed as interim CEO in searching for alternatives. Buchanan’s appointment marked Cole’s third CEO in three years as department stores struggled to reverse sales slump.
Middle-income shoppers have pulled back discretionary spending in the face of still high prices of essential items. It also faces tough competition between Walmart and Amazon, improving its fashion offering at affordable prices. Now, like many retailers, they face higher costs from President Donald Trump’s tariffs.
Opendoor Technologies
Opendoor’s stock has risen 28% this week, after almost tripling last week. Overall, they rose more than five times in July, closing at $2.88 per share on Tuesday. This is well below the $35.88 peak in early 2021.
The recent gains on the stock come when hedge fund manager Eric Jackson promotes X’s stock, previously known as Twitter. On July 14, he said he hopes hedge fund EMJ Capital has achieved position in Opendoor and will grow in the coming years.
Real estate services companies that buy and flip homes are not yet notching annual profits. Analysts voted by FactSet are looking forward to continuing to post losses in 2025 and 2026. The company faces a tough housing market. The rising interest rates and low supply of homes in the market have made it difficult for home buyers. These same factors also make today’s homeowners less likely to sell their homes. Especially those with low interest rates.
Meme Stock History
The original memestock is video game retailer GameStop. In 2021, the company struggled to survive amid a switch from disk to digital download, with major investors betting on the company. Keith Gill, an investor known as the “Roaring Kitty,” brought together other investors to acquire thousands of GameStop stocks, changing the stock’s trajectory.
GameStop was trading for under $5 in 2021. Shares closed at $24.26 on Tuesday.
The first meme stock trend finally flares up. But the frenzy sometimes rekinds as seen in the past few years with blackberries, beds, baths and beyonds, and sudden profits of chewy texture.
What are the risks of participation?
Investors who buy now bet that momentum will continue, but it could change suddenly.
It took only four weeks in 2021 for Gamestop stocks to go from under $5 to over $120. But it has not yet touched on its price again. BlackBerry quickly flew from under $7 to nearly $30 in early 2021, but profits were volatile and trimmed within a year. It is currently trading for around $4.
AP Business Writer Anne d’Hynenzio contributed to this report.
Original issue: July 22, 2025, 4:31pm EDT
