Retail investors are rallying around highly shorted companies like Kohl’s and Krispy Kreme, reminiscent of the “meme stock” frenzy. Opendoor Technologies, Kohl’s, Krispy Kreme, and GoPro are in the spotlight. Traders target Opendoor after EMJ Capital’s Eric Jackson predicts stock to hit $82, pushing it up 300%.

Eased U.S. trade tensions and interest rate cuts fuel the rally. Krispy Kreme, GoPro, Kohl’s, and Opendoor are the latest targets of amateur traders. Short sellers face losses due to short squeeze. Short interest is high in these stocks.

Meme stocks are companies boosted by retail traders on platforms like Reddit. Weak fundamentals and high short interest make them targets for short squeezes. The frenzy began in 2021 during COVID-19 lockdowns and zero-fee trading apps. Reddit users on apps like Robinhood drove up prices, squeezing hedge funds.

Read more at Yahoo Finance: Explainer-What is behind the latest rally in meme stocks?