Episode summary
Kohl’s Skyrockets as Stock Becomes Traders’ Latest Meme Darling | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Lisa Mateo · Guests: Mary Ross Gilbert, David Welch, Kenneth Shea, Will Lee
Summary
Kohl’s became the episode’s most dramatic market story as shares spiked as much as 105% after heavy retail-trader attention on social media, then settled far lower. The host and Bloomberg Intelligence retail analyst said the stock was behaving like a meme stock, with short interest and a crowded borrow position helping trigger a possible short squeeze. The analyst also said the company gave no response and argued the move came on top of a long period of weak operating performance, with revenues down by more than $2 billion over the last few years and multiple CEO changes.
General Motors’ $1.1 billion tariff hit was presented as evidence that automakers cannot easily absorb or pass through higher import costs. The Detroit bureau chief said GM had already warned of $4 billion to $5 billion in tariff exposure and that the industry faces weak pricing power because new vehicles are already expensive. He also pointed to EV inventory costs, warranty and recall expenses, and downward pressure in fleet pricing as additional drags on profits.
The episode also covered Coca-Cola’s plan to expand a cane-sugar Coke in the U.S., Philip Morris International’s faster-growing Zyn pouch business, and Lockheed Martin’s disappointing quarter. The defense analyst said Lockheed’s results were weighed down by large program charges, including a classified aeronautics program, while still showing strength in aeronautics volumes and missiles. He argued the bigger issue is pressure on the F-35 and weaker near-term growth than peers in defense.
Key takeaways
- Kohl’s stock moved like a meme name, with the retail analyst citing about 49% shares borrowed versus the float and a likely short squeeze.
- GM said tariffs cut profit by $1.1 billion in the quarter, and the Detroit bureau chief said automakers have little ability to pass that cost through to buyers.
- The GM discussion said EV-related inventory, warranty and recall costs added to the tariff hit and could slow the U.S. EV transition.
- Coca-Cola’s cane-sugar product was framed as an expansion of an existing strategy, with the analyst saying it could be priced at a premium in selected markets.
- Philip Morris’s Zyn pouches were described as a fast-growing business that helps offset flat or declining cigarette volumes.
- Lockheed Martin’s quarter was hurt by $1.6 billion in program losses and charges, with the analyst saying the F-35 remains the biggest headwind.
Notable quotes
“Well, it's acting like a meme stock, that's for sure, Lisa”
“And of course, you know, there could have been a a short squeeze that was triggered with this activity”
“But it's another headline that's getting some attention. They are launching a new Coke product that's made with cane sugar”
“the performance was muddled by this hefty $1.6 billion chart on program losses and then another 169 million of other charges”
How the episode opens
Bloomberg Audio Studios podcasts radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. Hold their shares surged as much as 105% in early trading.
Now their shares well they're up about 36%. It's just a record move. A lot of mentions by retail traders on social media.
Let's bring in someone who knows a little bit more about this. Let's bring in Mary Ross Gilbert. She's Bloomberg Intelligence senior equity analyst uh covering all things retail.
So Mary, can you tell us is this a meme stock?
Well, it's acting like a meme stock, that's for sure, Lisa. And as you pointed out, it was on social media. It looked like midday yesterday.
There was a post saying showing a Bloomberg chart and and showing the short interest. And if you look at the number of shares or the sharers borrowed versus the total float, it was about 49% which is pretty high. And it's near a historic high at least over the last couple of years.
And so the the post sort of circled that and then it identified and and noted, hey, how can you be short this stock and sleep well at night? And then apparently that kind of triggered other posts throughout I guess into the evening yesterday. And so of course in pre-market you know we saw the share surged as you pointed out over 200 over a 100%.
And you know yesterday the stock was up about 8%. We saw retail stocks on the move yesterday as well. And so it could be, you know, as one of your earlier commentators commentators discussed, you know, with such a strong market overall, this is a sector that has been beaten down largely with tariffs and then of course with execution issues when we're talking about Kohl's.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- meme stock kohl's
- retail earnings
- tariffs and auto earnings
- tobacco and nicotine pouches
- aerospace defense earnings
Companies and tickers mentioned
- KSS
- GM
- KO
- PM
- LMT
- Kohl’s
- General Motors
- Coca-Cola
- Philip Morris International
- Lockheed Martin
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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