Meme Stock Speculation Propels Koss Shares 25% Higher

Shares of headphone maker Koss Corp. soared for the second session in a row to end last week, closing at $13.35 a share, after trading as high as $18.50 early in the day, as social media posts speculated that a post by meme stock influencer Keith Gill indicated his interest in the company, Suzanne McGee reported for Reuters.

“Roaring Kitty” was speculated to become a buyer of Koss shares on or around July 4, the US Independence Day holiday. I Photo: Koss Facebook

Some followers of Gill, known to his online followers as “Roaring Kitty,” pointed to cryptic images he posted in May of a microphone against the backdrop of the US flag.

The image was shown as an emoji that scrolled across the end of a video. That led to speculation on Reddit, such as Otherwise-Category42's post on the subreddit devoted to GameStop that has been tracking Gill's return, that 'Roaring Kitty' would become a buyer of Koss shares on or around July 4, the US Independence Day holiday.

The poster also documented similarities between Koss and GameStop. Others on Reddit, however, were skeptical as the US flag emoji featured a microphone and not headphones.

Koss' gain on Friday follows a 143.8% jump during Wednesday's abbreviated trading session and brings its gains for the week to nearly 230%. In premarket trading on Friday, the stock briefly traded as much as 74% higher.

"There are absolutely no fundamental reasons why this company might be worth four times what it was at the beginning of the week," said Steve Sosnick, market strategist at Interactive Brokers.