Meme stock speculation drives Koss Corp. shares up 25%

From Investing.com: 2024-07-05 16:56:07

Shares of Koss Corp. surged for the second day, closing at $13.35 after hitting $18.50. Speculation arose from social media posts by meme stock influencer Keith Gill, hinting at interest in Koss. Gill, also known as ‘Roaring Kitty’, posted cryptic images in May, leading to Reddit buzz about potential investments.

Trading volume of Koss Corp. soared over 47 million shares, a stark contrast to its average of less than 2 million. With nearly half of 9.25 million shares held by insiders, small buying trends can cause significant price fluctuations. Despite the lack of fundamental reasons for the spike, the stock continues to rise.

While Koss Corp. saw significant gains, experts like market strategist Steve Sosnick highlighted the lack of fundamental value. Still, the stock increased by 230% over the week, with a premarket spike of 74% on Friday. This surge, linked to speculation from social media, reflects a broader trend of meme stock influence in the market.

Keith Gill, the influencer behind the Koss frenzy, has remained silent on the matter. Following his GameStop Corp. investment disclosure, he recently acquired a 6.6% stake in Chewy Inc. His followers scour his posts for clues, like the cartoon dog images preceding his Chewy investment. The case highlights the power of social media influencers in shaping stock trends.



Read more at Investing.com: Meme stock speculation propels Koss shares 25% higher on Friday By Reuters