WallStreetBets (WSB), the infamous subreddit known for turning stocks into “meme stocks” through coordinated retail trading, continues to drive notable volatility in the equity markets[1].
Recently, Opendoor became WSB’s latest sensation after a rush of retail activity pushed its share price to a peak of $3.99, representing a 537% surge in value[2]. However, the gains were short-lived: by midday Wednesday, shares had plunged to $2.05, a nearly 50% decline from its high, though the stock remains significantly above its June low of $0.51. Despite this dramatic price swing, some investors who adopted the “HODL” (hold on for dear life) mantra are still up by 300% from the bottom.
OpenDoor’s meme-stock status is confirmed by its high short interest—22% of outstanding shares have been borrowed by short-sellers. This increases the chance for a short squeeze, where price spikes force short sellers to buy back shares, propelling prices even higher. Wall Street analysts, however, remain skeptical; Goldman Sachs assigns OpenDoor a $0.90 price target with a sell rating, citing broader weakness in the US housing sector[3].
OpenDoor’s rival, Offerpad, also benefited from the meme-stock rally. It climbed from a low of $0.92 in late June to a high of $4.95 before falling back to $2.19, still up 238% from its bottom[2].
Kohl’s, a Fortune 500 retailer, has also been swept up in the meme-stock fervor. Despite ongoing operational challenges, poor financial performance, and recent leadership churn, meme traders targeted Kohl’s due to its high short interest, low share price, and perceived value opportunity. Major banks have slashed price targets for Kohl’s below $10, with analysts highlighting weak fundamentals. The rally, detached from company performance, underscores the influence of retail trades sparked by WSB momentum. Experts caution that while some traders profit, such exuberance can end with rapid reversals and steep losses for latecomers[4].
The resurgence of meme-stock activity demonstrates the ongoing power of WSB and similar online communities to drive outsized, risky moves in select stocks—often with little to no fundamental justification. The trend, renewed in 2025, continues to create sharp and sometimes unpredictable market events[1].