Shares of audio-equipment maker Koss (NASDAQ:KOSS) stock are doubling in value in Thursday pre-market trading. The move has all the markings of the Reddit crowd after yesterday’s 104% surge in shares of GameStop (NYSE:GME).
To be fair, GME traders at least had something fundamental to react to, namely the news that CFO Jim Bell resigned. Whether he jumped or he was pushed is subject to speculation, as activist investor Ryan Cohen has been calling for heads to roll.
As for the move in KOSS stock, I’d like to be able to report some fundamental reason for the move — at least today’s surge. Absent that, I’ll make due with what some of my fellow InvestorPlace contributors have to say about KOSS stock.
KOSS Stock Remains Reddit Relevant
Koss shares rose to relevance early this month in a powerful r/WallStreetBets rally. After several years in the penny stock leagues, KOSS stock in late January broke above $5 a share. To be sure, that was a major milestone for shareholders, but the biggest price moves were yet to come.
With a short squeeze and hopes for a turnaround story, the old-school audio equipment maker soared. In the days and weeks that followed, KOSS stock trading was choked off on Robinhood as retail traders rushed to find the next short-buster.
That drama caused InvestorPlace analyst Louis Navellier to caution that “it’s difficult to properly time an entry into a massive short squeeze. And if you don’t get it just right, you could lose money very quickly.” He advised that once the hype phase passes, “prospective investors can focus on the company’s fundamentals. And on that front, Koss is doing just fine.”
What to do from here? As I wrote on Jan. 26 during the first Reddit go-round on KOSS stock, while there could be money to be made listening to the r/WallStreetBets chatter machine, I’d sit and watch for now.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.