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Koss Corporation (Nasdaq: KOSS) stock surged over 250% today, reigniting interest in the meme stock that first gained attention during the January 2021 trading frenzy.
Despite the company’s weak fundamentals and lack of recent announcements, the dramatic price movement comes amid speculation on social media platforms (particularly a post on /r/superstonk titled “The GME – KOSS Connection: The spark to ignite the basket, and perhaps DFV’s next move?”) and renewed activity from influential retail investors.
Koss and Meme Stock RenaissanceKoss, a small consumer electronics company known for its headphones, saw its stock price skyrocket to $15.42 by midday, representing a gain of $11.06 or 253.67%.
This surge follows a 31% increase in after-hours trading on Tuesday, sparked by discussions on the popular Reddit forum r/Superstonk. The stock’s low float of approximately 5.26 million shares and high short interest of 7.7% as of June 15 have contributed to its volatility.The renewed interest in Koss coincides with the recent return of Keith Gill, known as “Roaring Kitty” on social media, who played a significant role in the original GameStop short squeeze. Gill’s reemergence has reignited enthusiasm among retail investors for potential short squeezes in various meme stocks.
KOSS is Up 360.30% Year-to-dateThe r/Superstonk post that preceded the price surge highlighted the strong correlation between Koss and GameStop stock movements and Koss’s unique characteristics that make it susceptible to a short squeeze. These include its lack of options chain, which limits manipulation tactics, and its small float, which could theoretically be locked up with a relatively modest investment of $20-40 million.Koss’s market metrics reflect the stock’s dramatic movement, with its market capitalization rising to $142.709 million. The company’s year-to-date return has now reached an astounding 360.30%, far outpacing the S&P 500’s 15.94% gain.
However, it’s worth noting that Koss’s fundamentals remain weak, with declining revenue and continued losses. The company reported a trailing twelve-month revenue of $12.45 million and a net loss of $1.12 million.More By This Author:3 Biotech Stocks That Can Gain Exponentially By Leveraging AITesla Surprises with Strong Q2 Deliveries, Stock SoarsParamount Sees Premarket Gains Amid IAC Takeover Bid Talks
