Mysterious Reddit Thread Causes New Meme Stock's 219% Surge... Crypto Armageddon (It’s Here)

US stocks ended the week with a louder bang than my neighbor's firework show, which may or may not have kept me awake all night.

Or perhaps I was just too disappointed that I missed Joey Chestnut eating 100 glizzies in the greatest sporting event of all time.

Anyways, the market once again hit all-time highs as investors cheered the latest jobs report, nudging Jerome Powell closer to slashing interest rates. 

The S&P 500 popped a celebratory 0.6% right after a record-setting close on Wednesday. The Dow Jones Industrial Average inched forward with a 0.2% climb, while the tech-savvy Nasdaq Composite showed off with a 0.9% boost, led by our tech kings.

That means all three major indices notched wins for the first trading week of the year's second half.

What else did you miss?

In today’s post market issue, I’m gonna spill the tea on:

Why Bitcoin’s 15% slump could be the beginning of another historic crash based on one indicator…

Why investors aren’t giving Tesla the stink eye anymore…

And how a mysterious reddit thread caused a new meme stock to audibly explode 219%...

Here’s where today’s heatmap landed.

Tech Stock Highlights:

• Apple (AAPL): grew 2.16%.
• Amazon (AMZN): Climbed 1.22%.
• Alphabet (GOOG, GOOGL): Rose 2.44%.
• Meta (META): led the pack with 5.87% gain.
• Tesla (TSLA): Gained 2.08%.
• Nvidia (NVDA): Dipped 1.91%.

Earlier labor data this week suggested a more relaxed job market, which means inflation might chill out. Traders are now betting big on the Fed cutting rates in September, with the odds sitting at a cool 75%, according to CME's FedWatch tool.

The 10-year Treasury yield (^TNX) slid to 4.27%, continuing its downward trend for the week. 

Tesla was a standout on the day as well. When Elon Musk said Tesla wasn’t just a car company but a tech company, the market gave him the stink eye, and so did sales. But now, with car sales soaring, Tesla is flexing its dual identity once again. 

(Source: Business Insider)

Over the last week, Tesla shares have surged more than 25%, boosted by vehicle deliveries that beat estimates, leaving the rest of the "Magnificent Seven" in the dust.

Musk’s ability to juggle high-tech ambitions and impressive car sales has been the key to Tesla’s comeback. Despite the stiff competition in China, demand softening at home, and all of Musk's extracurricular drama, Tesla is now riding a string of victories with an earnings report and a much-hyped robotaxi unveiling just around the corner.

In other news, while the stock market partied, Bitcoin had a bit of a meltdown. The price of Bitcoin (BTC-USD) sank more than 2% on Friday, dragging down the value to its lowest since February. This was a blow to crypto investors who have seen Bitcoin lose over 15% in the past three months. 

The falling sentiment has also hit crypto-linked companies like Coinbase (COIN), which fell by 1%, and crypto miner Marathon (MARA), which dipped 4%.

Stock.News Spikers of the Day

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Mysterious Reddit Thread Causes New Meme Stock to Explode 219%

A new meme stock is strutting down Wall Street like it owns the place, hitting new highs and leaving investors rubbing their eyes in disbelief.

Nope, not Gamestop, not AMC, and I’m not talking about Chewy.

Up a staggering 219% this week, Koss, the headphone maker it’s having its second-best week ever, channeling the glory days of January 2021. Today alone saw a 48% jump, with shares hitting $15.70, a peak not seen since November 2021.

Did they get bought out by Sony? Or did they sign a new contract with Bose? Nope… that would make too much sense. 

So, what’s behind this stock’s resurrection? You guessed it, Roaring Kitty. He “likes this stock” I guess. This guy has more power than the President it seems like. Let’s just go ahead and build him a statue.

Now in case you didn’t know, this saga began on Wednesday when Gill posted some cryptic social media clues (shocking right?), leaving everyone to play stock market detective. An old post including an American flag and a microphone emoji? Obviously, that means "buy Koss," right? The internet sleuths of Reddit and X thought so, and the speculation alone was enough to send Koss stock through the roof. 

It’s like all of these reddit traders all speak a secret language, and I’m just walking around like Professor Brody in that one scene on Indiana Jones.

Well anyways, the next day, r/Superstonk was lit up with chatter about Koss, sparking a 31% after-hours surge. Fast forward to today, and Koss's market cap has swelled to a beefy $123 million. Year-to-date, the stock’s return is a mind-boggling 288%.

Koss, known for its headphones and other stereo gear, was a darling of the original meme stock craze in 2021. 

But like a rock band that fell off the charts, it’s been in a slump ever since… until recently. Despite dismal fundamentals—$12.45 million in revenue and a $1.12 million net loss—Koss’s low float and high short interest make it a ripe target for meme-stock mania.

So there you have it, Koss has once again found itself in the spotlight. As of right now, I couldn’t find details on if Roaring Kitty has an official position and to what extent, but if you’re not already, you might as well keep your eyes peeled for the next cryptic post from Roaring Kitty—your portfolio might thank you, and at the very least it will keep you entertained.

Stock.News has positions in Apple, Tesla, Microsoft, Alphabet, Meta.