samxmeg/E+ via Getty Images
Koss Corporation (NASDAQ:KOSS) fell 22.3% in morning trading on Monday to cut into what had been a three-day rally of over 200%.
Short interest on Koss (KOSS) is only 4.2% of the total float, but the stock has fallen on the radar of some momentum traders. There has been speculation that Roaring Kitty’s simple July 4th social media post of a microphone could have brought in speculative buyers, even though the company is in the business of producing headphones. “There are absolutely no fundamental reasons why this company might be worth four times what it was at the beginning of the week,” noted Interactive Brokers Market Strategist Steve Sosnick at the end of last week.
Koss Corporation was founded in 1958 by John Koss in Milwaukee, Wisconsin. The company is considered a pioneering manufacturer of headphones, and introduced the world’s first high-fidelity stereophones, the SP/3, which revolutionized personal audio listening. Koss (KOSS) has a rich history of innovation, including the development of electrostatic headphones in the 1970s. Despite facing financial challenges in the 1980s, including a brief bankruptcy, the company has persevered under family leadership. Today, Koss (KOSS) continues to produce a wide range of headphones, from classic models like the Porta Pro to modern wireless and noise-cancelling options. Koss (KOSS) reported a 22% drop in revenue as part of its Q2 earnings report.