Meme-Mania Fuels Propels Shares of Koss Corp. (NASDAQ: KOSS)

Company Overview - Koss Corporation is a consumer discretionary company that designs, manufactures, and sells stereo headphones and related accessories both in the United States and internationally [11] - The company has a market capitalization of $123 million and has seen its stock trading at the high end of its 52-week range due to recent price surges [11] Recent Price Action - Koss Corp. experienced a surge of over 200% in stock price, with trading volumes exceeding 100 million shares on certain days, compared to an average of 1.9 million shares [3][10] - The stock saw an almost 140% jump during one trading session and nearly 220% gains for the week, with a peak increase of 70% in premarket trading [10] Fundamental Analysis - The latest earnings report from Koss, posted on May 9, 2024, showed an earnings per share (EPS) of ($0.03) and revenue of $2.64 million, a decline from nearly $6 million in Q2 2021 [4] - The company has maintained cash reserves of approximately $2.97 million and reduced total liabilities from $7.28 million to $6.48 million [12] Technical Analysis - The stock is currently considered extremely overbought, with a Relative Strength Index (RSI) of 90, indicating major overbought conditions [13] - Koss is trading significantly above its simple moving averages (SMAs) and is almost 500% above its 52-week low [13] Market Dynamics - The surge in Koss's stock price is largely attributed to social media speculation and meme stock influence, particularly from the user known as 'Roaring Kitty' [9][15] - The company has a small float of nearly 5 million shares, which, combined with high short interest, led to an intraday short squeeze and a supply-demand imbalance [5]