Koss Corp (NASDAQ: KOSS) soared a whopping 80% this morning as meme stock traders flocked back into shares of the headphone maker.
There hasn’t been an announcement, news, filing, or an analyst call that may have contributed to such a massive surge in KOSS share price on Wednesday.
At the time of writing, Koss stock is trading at $8.0 – up sharply versus its low of $2.33 in late April.
Roaring Kitty is keeping meme stock rally alive
Interest in the meme stocks has rekindled in recent days as Keith Gill or “Roaring Kitty” loaded up on shares of Chewy Inc shortly after disclosing a multi-million-dollar stake in GameStop.
In his recent livestream, the trader that inspired the massive short squeeze of 2021 said his position in GME is primarily a bet on Ryan Cohen – its chief executive who founded CHWY as well in 2011.
Koss stock has been on a roll ever since Roaring Kitty returned to the social media. Shares of the headphone maker rallied from $3.20 to over $6.0 following his first post on X.com in May of 2024.
Koss stock daily trading volume is on fire
A massive surge in Koss stock price this morning is coupled with a significant increase in trading volume today.
More than 18 million shares of the Nasdaq-listed firm have exchanged hands as of writing on Wednesday versus well under 1.0 million only on average.
Koss Corp shares continue to become a target of retail traders this year even though the short interest in it currently sits at only 7.7%.
The $62 million company based out of Milwaukee, Wisconsin is not very widely covered by the Wall Street.
Koss Corp Q3 earnings snapshot
Koss stock has more than tripled this year even though it reported a 22% year-on-year hit to net sales for its third financial quarter in May.
What that indicates is that the surge in KOSS share price is not backed by fundamentals. Michael J. Koss – the company’s chief executive said at the time:
A downturn in sales in the DTC space of nearly 30%, which appears to be a result of a slowdown in consumer spending amid high inflation, energy and borrowing costs, drove the overall decline in sales.
Koss Corp lost $313,780 in its recently concluded quarter – wider than $224,480 in the same quarter last year. The company did, however, talked of improvement in sales to e-tailers in its press release in May.
Despite massive returns, Koss stock remains a risky investment as its meme stock status and small market cap makes it prone to high volatility.
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