KOSS Corp (NASDAQ: KOSS) opened up more than 50% as the meme stock craze continued on Tuesday.
Koss stock has more than doubled versus its YTD low
Meme stocks including $KOSS have been rallying ever since Keith Gill who goes by “Roaring Kitty” on X posted on the social media platform on Monday.
His tweet was significant since it was the first one he’s made since inspiring the $GME short squeeze in 2021.
Koss stock is now up well over 100% versus its year-to-date low even though it reported about a 40% increase in net loss for its third financial quarter last month.
This is to say the recent rally is not backed by fundamentals per se – part of the reason why it “bothers” Jay Clayton – former chair of the U.S. Securities & Exchange Commission.
Clayton shares view on the meme stock craze
Discussing the return of meme stock frenzy on CNBC’s “Squawk Box”, Clayton said the past years have taught us that a “tweet is never an investment advice”.
Those participating in the short squeeze in the likes of $GME, $AMC, or Koss stock are “gambling” and not investing, he added.
Clayton went on to acknowledge that liking a stock and saying it out loud is not “illegal”. Still, he addressed Keith Gill and said:
Why not tell people why you did it. Why not come on the show and say, are you saying that GameStop is now a good investment opportunity.
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