Return of the meme stock: Bed Bath & Beyond shares skyrocket

By AP News


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NEW YORK (AP) — After a quiet first half of 2022, the meme stock is back. Beyond and back, in fact.

NEW YORK (AP) — After a quiet first half of 2022, the meme stock is back. Beyond and back, in fact.

Shares in Bed Bath & Beyond jumped 25% Wednesday on huge trading volume, and the mall-based home goods retailer’s stock has nearly quintupled in a little more than two weeks. If the stock's price holds until the market closes, it will be the fourth straight day it has gained more than 20%.

The inexplicable recent rise — a hallmark of so-called meme stocks — comes as Bed Bath & Beyond continues to lose money on plummeting sales as it struggles to navigate the post-pandemic retail landscape.

Bed Bath & Beyond fired CEO Mark Tritton in June after the company based in Union, New Jersey, reported a 25% drop-off in sales in its most recent quarter, which followed a 22% sales decline the previous quarter. Tritton, who as CEO of Target revitalized that retailer by introducing a bevy of new brands, laid out a similar plan for Bed Bath & Beyond in 2021, but with far less success.

It's hard to pinpoint why anyone would pour money into a company that's flashing as many warning signs as Bed Beth & Beyond, but it echos the 2021 trend where small investors banded together in online forums like Reddit’s WallStreetBets to stoke a frenzy over certain struggling companies, like GameStop, AMC and Bed Bath & Beyond.

Bed Bath & Beyond shares also skyrocketed in March when the investment firm of billionaire Ryan Cohen took a 10% stake in the company and recommended that it sell all or part of its business. Cohen, a co-founder at Chewy, was at heart of the GameStop meme saga last year.

Cohen built a huge following on Reddit and on social media in 2021 as smaller investors gobbled up meme stocks.


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Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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