Americans’ interest in meme stocks skyrockets over 600% in 2 weeks

The current meme stock rally is once again being driven by retail investor enthusiasm on social media, similar to the 2021 GameStop (NYSE: GME) frenzy, fueled by high short interest and speculative momentum.

2025 meme stock frenzy

The latest surge, particularly in stocks like Kohls (NYSE: KSS) and Opendoor (NASDAQ: OPEN), has been amplified by rising chatter on Reddit and X.

In this case, on Tuesday, Kohl recorded a 90% intraday surge despite “no confirmed catalyst.” On the other hand, Opendoors spike was linked to bullish sentiment on Stocktwits, with high trading volume signaling what some called a “mini-bubble.”

At the close of trading on Tuesday, Kohls stock ended the day up nearly 38% at $14.34. Opendoor, which had opened up 20%, reversed course and closed down about 10%. Despite the drop, OPEN remains up roughly 150% over the past week.

In Kohls case, a likely trigger was a short squeeze, with nearly 50% of its shares sold short as of late June, forcing bearish traders to buy back shares and pushing prices higher.

The broader meme stock revival comes in the wake of strong overall market sentiment. Currently, Wall Street is buoyed by record-breaking equity rallies, crypto-friendly legislation, and optimism surrounding global trade agreements.

Meanwhile, investor interest in mega-cap tech stocks appears to be waning, prompting some retail traders to pivot toward high-risk, high-reward plays.