Redditors are seizing another victory today with r/WallStreetBets darling Koss (NASDAQ:KOSS). KOSS stock is up nearly 20%, riding a wave with its WSB peers. Here is what you should know now.
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Many investors are likely familiar with the Koss story. Initially suggested as a potential Reddit winner due to its high short interest, the audio equipment maker has been in the spotlight. Since then, KOSS stock has popped along with GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC) and BlackBerry (NYSE:BB).
Today, that story is playing out once again.
So what is causing the move this time? Well, GameStop earned praise from the Reddit crowd this morning. The company announced that activist investor and board member Ryan Cohen was chairing a new strategic committee. Essentially, his job is to help turn GameStop around and make it into more of a tech and e-commerce business. And with the resignation of CFO Jim Bell already in the works, many investors believe Cohen has the power to actually achieve these goals.
As InvestorPlace contributor William White wrote this afternoon, the rest of the Reddit stocks were quick to follow. AMC popped, sending extra thanks to a bullish analyst note. BB and Naked Brand (NASDAQ:NAKD) are other winners.
So without any company specific news from Koss, it seems that a Reddit rally is once again behind share-price gains.
What else should you know about KOSS stock here?
The story here with Koss is tricky. Investors flocked to it thanks to its short interest and the power of social media. Since then, the company has even reported better-than-expected earnings for the second quarter. However, as Muslim Farooque highlighted, those earnings are largely thanks to a Covid-19 bump. Many consumers turned to the audio equipment maker to help power through working and living from home. Without a pandemic, Farooque worries how Koss will keep business growing.
As GameStop is highlighting though, never say never. The road ahead for Koss is far from smooth, but if there is anything we have learned, it is that r/WallStreetBets is determined. Keep this Reddit stocks story on your radar here.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
The post KOSS Stock: Koss Shares Soar on Today’s Big GameStop News appeared first on InvestorPlace.
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