Kohl's Corporation (KSS) stock surged 5.04% in intraday trading on Thursday, riding the wave of a renewed meme stock frenzy that has gripped retail investors. The department store chain's shares have become the latest target in a series of coordinated moves by social media-driven traders, reminiscent of the GameStop saga from early 2021.

The dramatic rise in Kohl's stock price can be attributed to a phenomenon known as a "gamma squeeze." This occurs when investors buy large amounts of call options, forcing market makers to purchase the underlying stock to hedge their positions. The process creates a feedback loop, driving the stock price higher. On Tuesday, Kohl's experienced an even more dramatic surge, with shares doubling intraday before closing up 38%.

Kohl's high short interest, with nearly 49% of its float sold short, made it an attractive target for meme stock traders. The combination of heavy short interest, aggressive call option buying, and social media hype has created a perfect storm for volatile price movements. This recent surge is part of a broader trend that has seen other beaten-down stocks like Opendoor Technologies, GoPro, and Krispy Kreme experience similar rallies in recent days.

While the meme stock resurgence has caught the attention of retail investors, market analysts caution that these moves are often disconnected from companies' fundamental values. As the frenzy continues, investors are advised to approach such volatile stocks with caution, recognizing the high-risk nature of these trades driven more by market mechanics and social media sentiment than by underlying business performance.