Bed Bath and Beyond Share Price: Meme stock driven rally props up prices!

Bed Bath and Beyond, an American retailer of home furnishings, has come under the spotlight of meme traders which has pushed its shares prices 300% higher in the past one week!

Any stock having such an unusual movement without any fundamentals backing the move are called meme stocks. Bed Bath and Beyond, AMC Entertainment, Gamestop and Nokia are examples of some meme stocks.

Meme stocks: What are they?

A meme stock is a stock that becomes popular among retail investors, typically through social media platforms like Reddit or Twitter. 

These investors, who are regular retail investors and not professional analysts/traders, drive up the price of a share through coordinated buying, which essentially means they discuss which stock to target and a whole cohort of investors together pile onto buying that stock. 

Meme stocks can be highly volatile and risky investments, as they are often driven by hype and emotions, rather than fundamentals. It's important for investors to research and understand the underlying business and risks before investing in any stock.

Bed Bath & Beyond share price: Performance

Bed Bath & Beyond share price: Company overview 

Bed Bath & Beyond is a retailer which sells an assortment of merchandise in the home, baby, beauty and wellness markets. The Company operates approximately 955 stores, including over 769 Bed Bath & Beyond stores in the US and Canada. 

The Company also operates Decorist, an online interior design platform that provides personalized home design services.  

The Company’s brands include Bee & Willow, Marmalade, Nestwell, Haven, Simply Essential, Our Table, Wild Sage, Squared Away, Studio 3B, and H for Happy. 

Bed Bath & Beyond share price: What’s going on with the company? 

Bed Bath & Beyond earlier this week reported a much wider-than-expected quarterly loss amid plunging sales.

The home goods seller has been struggling with a dwindling cash pile as vendors have demanded payments more swiftly even as a pandemic-led surge in demand for home decor has slumped as the economy has slowed.

This rapid fall in revenue has pushed the home furnishings retailer to raise the possibility of filing for bankruptcy! 

Bed Bath & Beyond share price: Why are share price rallying?

Data from S3 Partners indicated that retail investors are mostly betting the stock will rise, while bets against the company are mostly being placed by large institutional investors, setting the stock up for volatile trading.

The cohort of retail investors seem to be having the upper hand at the moment with the stock rising over 300% in one week. There is no reason why the stock should gain so much. 

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.