Shares of Kohl's Corporation (KSS) skyrocketed 5.23% during Tuesday's trading session, as the department store chain became the latest target of a meme stock frenzy. The sudden surge came amid increased retail investor interest and a potential short squeeze, given the stock's high short interest.

The dramatic rise in Kohl's stock price appears to be driven by several factors: 1. Meme stock momentum: Following recent surges in other heavily shorted stocks like Opendoor Technologies, retail traders on social media platforms have turned their attention to Kohl's as a new meme stock target. 2. High short interest: With approximately 49% of Kohl's float sold short, the stock was primed for a potential short squeeze, where short sellers are forced to buy shares to cover their positions, further driving up the price. 3. Price target upgrade: Goldman Sachs raised its price target for Kohl's from $5 to $7, although it maintained a sell rating on the stock. This minor upgrade may have contributed to increased investor interest.

The surge in Kohl's share price was accompanied by extraordinarily high trading volume, with nearly the entire float of the company changing hands before midday. This level of activity is reminiscent of previous meme stock rallies that captured market attention in recent years.

While the stock's movement is certainly dramatic, it's important to note that Kohl's fundamental business challenges remain. The company has reported declining sales in recent quarters and faces ongoing struggles in the competitive retail landscape. Investors should approach the current rally with caution, as meme stock surges often prove to be short-lived and highly volatile.