Koss Stock (NASD: KOSS) finished the day lower by -$9.89 (-24.29%) as AMC’s stock offering sent shockwaves across the heavily-shorted ‘meme stock’ basket.
Shares in the Milwaukee-based headphone maker suffered a sharp reversal of fortunes yesterday as the market digested AMC’s 11.55 million stock offering.
Koss, along with AMC Entertainment (NYSE: AMC), Bed Bath & Beyond (NASD: BBBY), and a host of other names, has been the target of an orchestrated short-squeeze in 2021.
In January, after coming to the attention of the “WallStreetBets’ Reddit forum, the Koss stock price gained +3,800% over three manic weeks of trading.
For most of 2020, the stock had failed to break above $3.00 per share, trading as low as $0.80 during the depths of the coronavirus stock market crash.
In almost 50 years since its listing in 1972, the Koss stock price had never traded above $15.45. So the $127.45 high in 2021 made quite the headlines.
After January’s squeeze fizzled out, the stock retreated to $11.45. However, two following attempts to break higher followed in March. The second took the stock as high as $40.80—a price we would not see again until the 2nd of June.
We can see just how incredible the price action has been over the last 6 months on the daily chart.
Tuesday’s spike to $43.91 carried the Koss Stock price above the 10th of March high. Technically, this could be seen as a positive sign. Nonetheless, there are more factors to consider.
AMC Entertainment announced yesterday that it would sell its stock for the second time in a week. This sent the share price sharply lower, taking many associated names with it. Similarly to January, the price volatility caused trading to be suspended several times.
How exchanges and brokers react to the sudden price moves will be key to where the Koss stock price goes next. Of course, there is always a chance that we haven’t seen the last of this latest squeeze.
However, there is also a chance that this rally disappears as fast as the previous three.
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