Bed Bath & Beyond jumps nearly 40%, AMC surges as meme chatter on message boards increase

1 min


185
124 shares, 185 points

A view of a Bed Bath and Beyond store in Daly City, California.

Justin Sullivan | Getty Images

Bed Bath & Beyond and AMC Entertainment surged on Monday as meme traders seemed to be betting on the stock despite any apparent catalyst for the move.

Shares of both heavily shorted stocks were last up 40% and 16%, respectively, while GameStop added more than 12%. At one point in the session, Bed Bath & Beyond shared soared as much as 63%.

As of midday Monday, Bed Bath & Beyond was the most searched name on Reddit’s WallStreetBets discussion board, according to Quiver Quantitative. Users under a pinned thread titled “GME, BBBY and AMC Memestock Megathread for Monday August 8th, 2022” appeared to be buying up shares of the retail stock.

One user said they “took out a 27k loan, went all in on BBY,” which a group moderator seemed to confirm. Another user (TheDude0007) alleged to have capitalized on the BBBY spike, turning $45,000 into almost $450,000 using common stock and call options.

All three stocks have been a part of the meme stock craze that has hit Wall Street in recent years and driven names these names higher as investors bought up shares and forced short sellers to attempt to cover their losses, creating what’s known as a “short squeeze.” According to data from FactSet, a whopping 46% of the stock’s float is sold short.

As many retailers cope with inflation-wary consumers and excess inventory, Bed Bath & Beyond has struggled to reverse declining sales, fix its merchandising strategy and gain back customers who have fled to its competitors. It’s also been searching for a new leader after the board announced in late June that CEO Mark Tritton had left the company.

At the same time, the Union, New Jersey-based home goods retailer has also been burning through cash as its net losses grow. While the company has not provided a forecast, it said it expects same-store sales trends to improve after plummeting 24% year over year in the quarter ended May 28.

— CNBC’s Melissa Repko and Jack Stebbins contributed reporting.

Source: CNBC


Like it? Share with your friends!

185
124 shares, 185 points

What's Your Reaction?

Cute Cute
8
Cute
Fun Fun
26
Fun
Hate Hate
21
Hate
Confused Confused
10
Confused
Fail Fail
2
Fail
Geeky Geeky
24
Geeky
Love Love
16
Love
OMG OMG
10
OMG
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format