Despite analyst warnings about “unrealistic” valuations, as retail investors in Reddit-owned WallStreetBets are under fire from activist investor and GameStop chairman Ryan Cohen Encouraged by yet another big acquisition.
Michael M. San Diego/Getty Images
Bed Bath & Beyond’s stock surged 70% in Tuesday’s session before pulling back, but It still closed the day up more than 29% to close at nearly $21 a share.
The stock was suspended several times due to volatility amid record trading volume , reached 188 million shares by noon EST (the company has only about 80 million shares outstanding).
Bed Bath & Beyond’s Stock Gets a Huge Boost Thanks to Reddit Waiting for the army of retail investors on social media sites to snap up stocks: According to reports, the most popular mention in Wall Street betting chat rooms on Tuesday was the ticker BBBY to data provider Quiver Quantitative.
Meme stock traders pushed shares higher again after news that GameStop Chairman Ryan Cohen owns more than 10% of a Bed Bath & Beyond, buying more than 160 10,000-share call options.
Retail investors interpreted the move as a vote of confidence, as Cohen’s call options had strike prices between $60 and $80 — meaning he was essentially betting on Note that Bed Bath & Beyond stock can rise to these levels.
Shares have surged more than 80% in the past three days alone, even in the new In a warning about the company’s business outlook, Wall Street analysts, most of whom maintained a “sell” rating on the stock, according to FactSet.
Bed Bath & Beyond Tuesday The rally comes as another analyst turned bearish, with a price target of just $5 per share implying a decline of more than 75% from current price levels. B. Riley Financial analyst Susan Anderson wrote in a note to clients that the stock “has recently again caught the attention of retail traders on the Wall Street stakes Reddit forum, which was featured in the January 2021 GameStop saga notorious”. She insisted that the stock continues to trade at “unrealistic valuations,” even though the recent rally could provide the company with a “long-term lifeline” if it raises funds from stock sales similar to other meme stocks like GameStop and AMC .
Activist investor Ryan Cohen first disclosed a roughly 10% stake in the company in March. Bed Bath & Beyond CEO Mark Triton was replaced in late June after another batch of poor financial results, following his push for company change and a turnaround in the business. Despite the lack of good news, the company’s shares are up 41% so far this year on the back of retail investors, while the SPDR S&P Retail ETF is down 19% and the broader S&P 500 is down 10%.
Bed Bath & Beyond surges nearly 40% as retail traders pile into Meme stock (
Bath & Beyond shares jump more than 20% after new CEO buys 50,000 shares ( Forbes
AMTD Digital may become the new “perfect expression pack”, the increase More than 125%, the market value of a single day has shrunk by 100 billion US dollars ( Forbes )
Meme stock soars despite market sell-off: GameStop trading halted, AMC jumps (Forbes)
exist Follow me on Twitter or LinkedIn. Give me a safety tip .