Koss (KOSS) shares soared nearly 38% at one point on July 23, as retail investors rallied behind the headphone maker, reigniting memories of its past meme stock breakouts. 

While the short interest in KOSS at roughly 3.5% wasn’t nearly as elevated as in the likes of Kohl’s (KSS) heading into Wednesday, meme stock enthusiasts flocked into it still purely for a hit of nostalgia. 

The momentum pushed Koss stock to a new year-to-date high of $8.59. However, shares of the Milwaukee-headquartered firm have now retreated back below $6. 

Koss Stock Remains Super Risky to Own

Despite retail momentum on Wednesday, KOSS shares are a highly speculative play at best. 

At about $6.00 per share, the Nasdaq-listed firm remains vulnerable to manipulation and unexpected price swings. Its small market cap (less than $60 million at writing) means even modest buying pressure can send shares soaring. 

Financially, Koss is struggling. Revenue has stagnated around $12 million annually, and it posted a net loss of well over $300,00 in its most recent quarter. 

With negative profit margins and limited growth prospects, Koss stock lacks the earnings strength to warrant ownership. Simply put, for long-term investors, its fundamentals don’t support the hype.

Wall Street Doesn’t Cover KOSS Shares

Another red flag that substantiates KOSS’s speculative nature is the absence of traditional Wall Street coverage. 

As of writing, no analysts tracked by Barchart offer price estimates or earnings forecasts for the Milwaukee-headquartered firm, leaving it entirely on the whims of retail traders driving sentiment via social media buzz. 

Without analyst scrutiny, Koss shares trade more like a momentum vehicle than a company priced on fundamentals. For serious investors seeking transparency and guidance, the lack of coverage is a huge let down. 

Finally, the past meme-driven rallies in KOSS stock serve as cautionary tales of fleeting frenzy and sharp reversals as well.