Meme stocks are making a comeback, but with less explosive moves this time. Stocks like Opendoor, Kohl’s, GoPro, and Krispy Kreme have seen big gains, but lacking the squeeze factor of GameStop in 2021. Borrowing costs for shorting Kohl’s and Rocket haven’t skyrocketed like GameStop, limiting potential short squeeze.

Market makers are well-positioned to provide liquidity in latest meme-stock rallies, with borrowing costs around 10% annualized for Kohl’s and Rocket, compared to GameStop’s nearly 80% in 2021. This suggests limited potential for an extreme short squeeze, as implied lending rates reflect shorting costs and indicate short squeeze strength.

Implied lending rates play a crucial role in shorting costs and short squeeze potential, with high borrowing costs making it expensive to maintain a short position. Market makers have adjusted their pricing, making short selling more accessible and less prohibitive compared to the GameStop frenzy in 2021.

Read more at Yahoo Finance: As latest meme-stock drama unfolds, there’s one thing that is different this time around