Opendoor, Kohl's Stocks Recover As A 'Growing Sense Of FOMO' Could Fuel More Meme Stock Rallies

FOMO — or "fear of missing out" — is fueling a fresh wave of meme stock mania, analysts say, with Opendoor Technologies Inc. OPEN leading the charge.

• See up-to-the-minute charts for Opendoor Technologies stock here. 

Opendoor stock was up 18% in Thursday's midday trading, recovering from a down day on Wednesday. The share price of Kohl's Corp. KSS was also higher, trading up by 8% at the time of publication. 

However, other recent retail darlings like Krispy Kreme, Inc. DNUT and GoPro, Inc. GPRO struggled to rise above the breakeven point Thursday following massive rallies earlier in the week. 

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What's Driving The Action? 

Retail investors are getting back into the market, driven by strong economic data and President Donald Trump's announcements of new trade deals, according to Stephen Callahan, trading behavior analyst at Firstrade. 

Callahan said retail investors are returning to the market at a time when it has become more difficult for individual investors to find traditional "bargains."  

As macroeconomic uncertainty settles and the S&P 500 hits new highs almost daily, retail investors are turning to more speculative plays that have gathered momentum through social media as they seek higher returns. 

The trading behavior analyst highlighted the influence of retail investors and the viral spread of ideas online in several recent speculative plays. 

"The online trading community has identified a new crop of meme stocks, DNUT, OPEN, RKT, and KSS, all of which have seen significant price spikes following heightened chatter on Reddit's WallStreetBets and similar forums," Callahan said. 

Callahan said that a "growing sense of FOMO is emerging," which could add to the momentum of the current retail trend, and new meme stocks could emerge if market sentiment remains strong.

"If confidence in the market continues to grow and macro indicators continue to point to a strong underlying economy, we're likely to see more of these rallies … reinforcing the influence and staying power of the retail trading community," Callahan concluded. 

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