Why Kohl's Breaks the Meme Stock Mold (And What Actually Matters)

The Taken Meme Phenomenon of 2025

The meme stock trend shows no signs of slowing down in 2025. While the original wave centered on AMC Entertainment and GameStop, fresh faces have claimed the spotlight—most notably Kohl’s (NYSE: KSS). But here’s where the narrative shifts: unlike its meme predecessors that became untethered from business reality during their rallies, Kohl’s presents an entirely different picture. The stock is trading significantly below what the company is actually worth, making it something of a paradox in meme culture.

Why Last Summer’s Rally Fizzled

When Kohl’s share price climbed from single digits toward the mid-teens in summer 2024, retail traders once again attempted to orchestrate a short squeeze. The conditions seemed right—substantial short interest was in place. Yet the taken meme dream didn’t materialize. The retail trading community’s firepower in 2025 pales in comparison to 2021’s coordination and impact. Instead of rocketing “to the moon,” Kohl’s settled at levels that roughly reflect current earnings—but here’s the catch: those levels still sit well below the company’s true underlying worth.

The Real Story: Asset Value Nobody’s Talking About

This is where things get interesting. Back in 2022, a bidder offered $60 per share for the entire company, with real estate holdings forming the cornerstone of that valuation. That same year, a private equity group separately valued just the property assets at $2 billion.

According to Kohl’s most recent annual filing, the company’s owned land and buildings carry a book value of $9.44 billion—a figure that towers over its current enterprise value (market cap plus net debt) by roughly $1 billion. With a market cap of just $1.76 billion, the math suggests that strategic asset sales could theoretically unlock significant value relative to today’s stock price.

However, banking on such a catalyst may prove as misguided as the short-squeeze thesis. The real driver for meaningful stock appreciation likely depends on whether management can execute a genuine operational turnaround. Without confidence in that turnaround, current valuations—however discounted—may represent fair compensation for the execution risk involved.

What History Actually Teaches Us

The Motley Fool’s stock-picking track record provides useful perspective. When they recommended Netflix on December 17, 2004, a $1,000 investment would have grown to $576,882. Similarly, their April 15, 2005 Nvidia call turned $1,000 into $1,119,006. These weren’t meme rallies—they were genuine business transformations identified early.

Stock Advisor’s overall average return sits at 1,002%, dwarfing the S&P 500’s 190% gain over comparable periods. The lesson: explosive returns typically follow operational excellence and fundamental growth, not viral momentum or asset liquidation hopes.

The Bottom Line

Kohl’s represents an intriguing case study but not necessarily an obvious investment. The discount to intrinsic value is real, the real estate holdings are substantial, and the meme community has taken notice. Yet success depends almost entirely on management proving they can revitalize the core retail business. For investors considering Kohl’s, that operational question should be central to the decision—not the meme narrative, and not theoretical real estate sales.