Koss Stock Rockets 250%: Meme Stock Madness Strikes Again

Author: Surbhi Jain | July 05, 2024 08:29am

The meme stock phenomenon isn't dead—it's just biding its time. Koss Corporation (NASDAQ:KOSS), a headphone maker with fundamentals that could use a little tuning, saw its stock price skyrocket over 250% on Wednesday. This surge is reminiscent of the 2021 meme stock frenzy that saw retail investors upend Wall Street norms.

The Meme Magic Behind Koss's Surge

By midday, Koss's stock price had reached a dizzying $15.42, up $11.06 or 253.67%. This followed a 31% jump in after-hours trading on Tuesday, ignited by a viral post on the popular Reddit forum r/Superstonk. The post, titled "The GME – KOSS Connection: The spark to ignite the basket, and perhaps DFV's next move?" sparked a wave of speculative buying.

The GME – KOSS Connection: The spark to ignite the basket, and perhaps DFV’s next move?
byu/Otherwise-Category42 inSuperstonk

Retail investors, nostalgic for the days of the GameStop Corp (NYSE:GME) short squeeze, pounced on Koss. The stock's low float of about 5.06 million shares and high short interest of 7.99% only added fuel to the fire. Keith Gill, the influential retail investor known as ‘Roaring Kitty,’ who was instrumental in the GameStop saga, has recently reemerged, further stoking the flames of this meme stock revival.

Read Also: Roaring Kitty Reignites Koss Stock: What’s Next For Investors?

Koss Stock’s Bullish Exuberance

Koss's technical metrics paint a picture of bullish exuberance:

Chart created using Benzinga Pro

• The share price soared past its 5, 20, and 50-day exponential moving averages, signaling a strong bullish trend.
• Koss's share price of $13.87 outpaces its 8-day simple moving average of $6.29, a clear bullish signal.
• The stock price stands well above its 20-day SMA of $5.06 and its 50-day SMA of $4.44, reinforcing the bullish sentiments.
• With the share price also exceeding its 200-day SMA of $3.26, Koss is technically in a strong bullish setup.

Chart created using Benzinga Pro

• The MACD indicator at 1.16 and an RSI of 90.63, although indicating overbought conditions, suggest continued bullish momentum.

Despite the company's shaky fundamentals—declining revenue and continued losses—these technical indicators have sent retail investors into a buying frenzy.

While Koss’ fundamentals remain weak, the stock is riding high on a wave of social media speculation and retail investor enthusiasm. As the meme stock phenomenon reawakens, Koss’ stock could continue to see dramatic price movements.

In the immortal words of the meme stock community: To the moon!

Read Next:

• Koss Corp Stock Is Ripping Higher As Roaring Kitty Speculation Mounts: What’s Going On?

Photo: Shutterstock

Posted In: GME KOSS