Koss Corporation (NASDAQ: KOSS) is flying high, following yesterday’s 29.5% gain with a further 12.5% jump in the premarket session. KOSS movements have been consistently delivering good news to its investors recently, leading to a frenzy amongst market participants. The stock’s five-month-long bearish tumble of 68% has finally been seeing a reversal last week climbing 56.9% since. The frenzy surrounding the US-based headphone producer and exporter has led some to suggest KOSS being a meme stock. In fact, the lack of any noticeable catalysts for the surge are labeling KOSS as being a Reddit pump stock.

KOSS Caught Up in Meme Stock Battle Against Wall Street Hedge Funds

Amongst the infamous meme stocks of last year’s Reddit bout against Wall Street hedge funds, KOSS was a prominent name. It was amongst GameStop, BlackBerry, and others that were heavily shorted by giant hedge funds in Wall Street. The market frenzy delivered a short squeeze of epic proportions, which gave rise to the meme stock phenomenon.

The current upward movement, devoid of apparent catalysts seems to be a similar meme-led frenzy delivering a rapid short squeeze. The degree to which the squeeze is likely to last remains uncertain. Despite this uncertainty, however, the market is evidently rushing in to gain exposure on this heavy growth. Working as a domino effect, this frenzy is only accelerating the short squeeze underway. Analysts have further suggested that last year’s meme stock bounce could be making a comeback, given current global financial dynamics. However, it remains too soon to tell whether KOSS is really at the early stage of a wider meme frenzy, or a spontaneous and short-lived price surge. Either way, the market is closely watching the KOSS movement, ready to bet according to what developments end up pointing towards.

KOSS Growth Prospects

The mystery surrounding the KOSS growth surge deepens upon assessing its latest earnings report released last month. The company’s performance was dismal, with a decreasing revenue figure by 13.4% throughout the last year. Similarly, net income had fallen from $636,000 to a low of $479,000. This raises serious red flags in regards to the growth prospects of KOSS.

Conclusion

KOSS is suddenly going through a surge in price, despite dismal financial growth prospects. The lack of any catalysts suggests that the growth links primarily to a meme frenzy surrounding the stock. This increasingly begins to point towards a large-scale short squeeze against Wall Street, similar to what ensued in January last year.