Shares of headphone maker Koss Corp. (KOSS.O) surged for the second consecutive day on Friday, closing at $13.35 a share after trading as high as $18.50 earlier in the day. This surge was fueled by speculation on social media that meme stock influencer Keith Gill, known to his online followers as “Roaring Kitty,” might be interested in the company.
The speculation stems from a cryptic image Gill posted in May, featuring a microphone against a U.S. flag backdrop. This led to speculation on Reddit, particularly on the GameStop subreddit, that Gill might invest in Koss around July 4th.
Despite the speculation, market strategists emphasize that there are no fundamental reasons for the company’s stock to surge to four times its value from the beginning of the week. Koss’s small public float, with almost half of its shares held by insiders, means even minor buying activity can result in exaggerated price movements. Trading volume on Friday reached over 47 million shares, significantly exceeding its average daily volume of less than 2 million.
While Gill has not publicly commented on Koss, he did disclose a position of 9 million shares in GameStop Corp. (GME.N) in mid-June and recently revealed a 6.6% stake in online pet food retailer Chewy Inc. (CHWY.N).
The situation highlights the potential risks associated with meme stock speculation, characterized by volatile price movements and a lack of transparency. Investors are urged to conduct thorough research and consider the underlying fundamentals of a company before investing, especially in situations driven by speculation and hype.