BBBY

Back in late June, Bed Bath & Beyond (BBBY 24.84%) posted a disastrous first-quarter report and fired its CEO, Mark Tritton. Its stock subsequently sank ...

Meanwhile, its long-term debt -- which rose 17% year over year to $1.38 billion in the first quarter -- still raises concerns that it could become the next J.C. It only had $108 million in cash and equivalents at the end of May, and it's reportedly been seeking out private loans to stay solvent. The company dismissed Tritton in June and named Sue Gove, an independent director on its board, as its interim CEO. At the end of July, 36% of Bed Bath & Beyond's outstanding shares were still being shorted. Unfortunately, Tritton took over just as the COVID-19 pandemic started, and its post-lockdown recovery was brief and But over the past month, its stock more than doubled to about $13.

The stock price of Bed Bath & Beyond (BBBY) increased by 29.06% in the previous trading session. This is why.

Cohen had acquired a stake of over 10% in Bed Bath & Beyond as of late March. Cohen’s venture capital company RC Ventures had bought distant out-of-the-money call options on over 1.6 million Bed Bath & Beyond shares with strike prices ranging between $60 and $80. And the stock also increased over 28% pre-market today.

Although shares of Bed Bath & Beyond spiked higher due to activist investor Ryan Cohen's bullish wager, bears see a contrarian opportunity with BBBY stock.

However, just in the first half of this year, purchasing power declined by 5.3%. Notably, the put/call open interest ratio for Bed Bath & Beyond is 0.56, conspicuously below the common delineation point of 0.70. For the second put, the spread was 1.09%. While it’s always risky to presume that circumstances will pan out differently from prior norms, an inherent risk exists in participating in the latest swing higher for BBBY stock. Coming in right behind the aforementioned trade was bearish activity for the $18 puts, also with the same expiration date. For the first put, the bid-ask spread as represented by the midpoint price ($6.70) was 2.98%. Leading the way were $25 puts with an expiration date of Aug. 16, bearish transactions against BBBY stock represented some of the oddest trades regarding [acquired 1.67 million call options](https://www.reuters.com/markets/europe/meme-stock-bed-bath-beyonds-rally-rages-2022-08-16/) on BBBY stock. According to a [Form 3 document](https://bedbathandbeyond.gcs-web.com/static-files/b08a4b0d-b9fd-467e-a69e-0e96c990ff45) which Cohen filed on Aug. However, not everyone is clamping at the bit for BBBY stock, presenting a tricky narrative. Nevertheless, the memes may be resurfacing, with Bed Bath & Beyond (

With the entire financial and crypto markets in a winter period of sorts, there has been a renewed interest in meme stocks amongst retail traders.

[analysts skeptical](https://finance.yahoo.com/news/bed-bath-beyond-dumpster-fire-out-of-business-181505056.html) over the company’s future. [abrupt replacement ](https://www.cnbc.com/2022/06/29/bed-bath-beyond-bbby-q1-2022-earnings.html)of Mark Tritton as CEO. [ bet on the struggling retailer](https://www.cnbc.com/2022/08/16/bed-bath-beyond-soars-70percent-as-meme-traders-bet-on-ryan-cohen.html). Following reports of [financial stress](https://finance.yahoo.com/news/photos-that-show-bed-bath-beyond-102454218.html) for some Bed Bath & Beyond outlets in New York, members of the subreddit hyped up the BBBY stock. Late June saw the release of the company’s [ first-quarter earnings report,](https://finance.yahoo.com/news/bed-bath-beyond-inc-reports-113000246.html) where it recorded a $224 million loss. We also note the category has turned materially more promotional and demand now also slowing at the higher end of the market.” The heightened attention has seen a new king emerge, with Bed Bath & Beyond (BBBY) [seemingly usurping](https://finance.yahoo.com/news/bed-bath-beyond-stock-reddit-meme-fueled-rally-114013133.html) AMC and Gamestop in the latest frenzy. These [call options](https://tokenist.com/investing/vega-options/) had strike prices between $60 and $80 on more than 1.6 million units of the shares. Therefore Cohen is wagering that the share price of Bed Bath & Beyond can skyrocket as high as $80. Fueled by enthusiastic traders on the social media platform Reddit, the BBBY stock went from $14.38 on Monday to $28.23 yesterday. However, the start of the month saw the value surge nearly 100% from $6.28 to $11.88 before slumping to $8.99. The American chain of general merchandise stores has seen tremendous interest in August from retail investors.

Bed, Bath & Beyond has become victim of kind of “great extinction” taking down one retailer after another. Stores are famous for both a wide-variety of ...

The biggest risk to my short thesis would be that a rally driven by retail traders goes on longer and drives the stock higher than I anticipated. Options can be great for limiting losses, but options volatility here is extremely expensive, so it may be best to consider options spreads or strategies designed to short expensive volatility such as selling a straddle. But over any meaningfully long period of time, it seems that the company's problems are growing faster than its opportunities. The inference is pretty clear that as experienced investors short the stock, they are probably also buying bonds as a hedge. The true picture may be even worse than the probabilities implied by these bond prices because as you can see here, the near-term bond was trading under 40 cents on the dollar until Bed, Bath & Beyond became a “meme stock.” Now to be clear, I don’t think the current trends of shipping costs and liquidating inventory will continue to be as dramatic next quarter as they were last quarter - but that doesn’t mean the company will stop losing money any time soon. Revenues and gross margins have been falling in tandem: As we’ll see below, the current macro environment of higher costs, too much inventory, and high shipping costs and a return to normal from elevated spending levels during Covid-19 are not all the company has to worry about. The macro environment right now presents a number of challenges for our business. One big issue is the growth in e-commerce and drop–shipping that makes it easier for not only new entrants but also other incumbent companies to compete with Bed, Bath & Beyond and for household goods. The stores are famous for both a wide-variety of inventory: I’m short Bed, Bath & Beyond, and while the stock might bounce around for a while, I feel strongly that trends in retail and weak financial performance will soon be reflected in the stock price in spite of recent price action.

Bed Bath & Beyond shares have gone from $5.03 at the end of July to as high as $28.60 per share at yesterday's intraday high. See why I'm bearish on BBBY.

In 2021, the total return of the portfolio was +55%. In 2020, the total return of the portfolio was +93%. There are zero tangible signs of any business recovery whatsoever, the macro backdrop continues to be rocky, at best, and housing has fallen off. For perspective, shares of BBBY closed the month of July 2022 at $5.03. If you are looking for a signpost that markets are once again becoming psychedelic, look no further than BBBY shares leaping from $5.03 to as high as $28.60, in a span of 15 days. Turning to the balance sheet, as BBBY spent an inordinate amount of money on buybacks, that is also a hot mess. And to be clear, and I discussed the topic a bit, with my group in "live chat" yesterday, when BBBY shares were then trading close to $27, I did buy a few BBBY August 26, 2022 $26 puts. For perspective, again when BBBY shares were trading at close to $27, I had to pay $7.71 per contract, for the right to sell BBBY shares at $26, on August 26th. During that period, consumer sentiment was very strong, and this was an amazing time to be a retailer. Bed Bath & Beyond sales have gone from $11.2 billion in the fiscal year ending February 29, 2020 to $7.9 billion in the fiscal year ending February 26, 2022. Ninety-five percent of my bandwidth and ninety-eight percent of my capital are deployed on the long side. That said, when you are playing Liar's Poker, no question there is always an element of timing and the recent market 'melt up' and extraordinary bearishness towards Carvana was the jet fuel that empowered the big leg up.

Home retailer Bed Bath & Beyond (BBBY): Reddit interest is driving BBBY stock to new highs but there are warnings that the BBBY stock price is becoming ...

[letter](https://s.wsj.net/public/resources/documents/bbbletter030622.pdf) to management outlining the company’s underperformance and suggesting possible remedies. “In the quarter there was an acute shift in customer sentiment and, since then, pressures have materially escalated. [TGT](https://capital.com/target-stocks-price)) stock price [TGT](https://capital.com/target-stocks-price)). For the month of August, the stock is up a spectacular 313%. [BBBY](https://capital.com/bed-bath-beyond-inc-share-price)) stock price

Bed Bath & Beyond (BBBY) stock is up 31% at $27.22 in Wednesday's premarket a day after it was disclosed that major investor Ryan Cohen had purchased.

The author makes no representations as to the accuracy, completeness, or suitability of this information. Maximize our actionable content, be part of our community, and chat with our experts. XAUUSD is pressuring the 38.2% retracement of its latest daily advance. The author will not be held responsible for information that is found at the end of links posted on this page. The author has not received compensation for writing this article, other than from FXStreet. It also does not guarantee that this information is of a timely nature. Loop Capital gave the struggling retailer a $1 price target earlier this month, saying that it was headed the way of Sears. Just since July BBBY stock has gone from oversold to overbought on the Relative Strength Index (RSI). FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. This would require an immense short squeeze, possibly the Mother of All Squeezes to borrow a phrase from the AMC apes. So what is the deal with Ryan Cohen? The meme stock is up roughly 300% over the past month despite the fact that many analysts believe the home goods retailer is headed for bankruptcy.

The official market terminology for recent trading in Bed Bath & Beyond is crazy.

](https://www.barrons.com/market-data/indexes/spx) ](https://www.barrons.com/market-data/stocks/bbby) [

Investors betting against the most well-known meme stocks have lost about $1.65 billion this month after the shares soared in value, prompting a short squeeze.

[AMC Entertainment Holdings Inc.](/quote/AMC:US)’s 47% rally has pushed mark-to-market losses for short-sellers to $653 million, S3 Partners data show. Investors betting against the most well-known meme stocks have lost about $1.65 billion this month after the shares soared in value, prompting a short squeeze.

The rally appears to be driven by the Wall Street Bets crowd on Reddit, the same noisy corner of the online forum that turned AMC and Game Stop into meme...

[Challenges facing ousted Bed Bath & Beyond CEO became ‘quickly insurmountable’: retail expert](https://www.marketwatch.com/story/challenges-facing-ousted-bed-bath-beyond-ceo-became-quickly-insurmountable-retail-expert-11656528191) [GME,](/investing/stock/GME?mod=MW_story_quote)into -3.96% [meme stock darlings](https://www.marketwatch.com/story/zombie-stocks-amc-and-gamestop-could-feel-the-cash-burn-says-new-constructs-11660675221). “This [rally] is less about logic and rationality and more about the tribe’s call to arms.” The private equity chief thinks that Bed Bath & Beyond’s management will likely use the stock valuation increase to refinance and improve its balance sheet. “This is a company that had already been looking at the purchase of their casket not long ago and has fairly anemic year-over-year growth projections in the short term,” he said. “This isn’t about rationality, this is about group mobilization powered by Red Bull and excitement that ultimately ends like the Hindenburg,” Eric Schiffer, chief executive and chairman of private equity firm Patriarch Organization, told MarketWatch. S3 Partners Research has seen an increase in shares shorted even as Bed Bath & Beyond’s stock price has soared. “The hand of retail investors is visible once again as both cash purchases and call option volumes have increased more than 70x from their all-time average.” [AMC, -13.91%](/investing/stock/AMC?mod=MW_story_quote)and Game Stop Corp. By way of comparison, the S&P 500 index has risen 1.6% in the last five days, 8% in the last month and 9% over the last three months. Bed Bath & Beyond’s stock is up 70.4% this year, whereas the S&P 500 index [SPX,](/investing/index/SPX?mod=MW_story_quote)is down 10.3%. The beleaguered home goods retailer’s shares have risen 136.4% in the last five days, 344.5% in the last month and 179.4% over the last three months.

Some stocks are only good for short-term trading, while others are meant to be buy-and-hold investments. There's a lot of hype surrounding Bed Bath Beyo...

[BBBY reported a quarterly operating loss of $288.2 million](http://The Fundamentals Just aren't There for BBBY Stock). It’s possible, then, that some traders observed Cohen’s evident confidence in the meme stock and consequently bought up shares of Bed Bath & Beyond. So, feel free to watch with amazement from the sidelines as the meme-stock frenzy continues in 2022. Also, during the time when Tritton was being removed from his CEO position, Bed Bath & Beyond had just posted dismal first-quarter 2022 fiscal and operational results. After all, these aren’t sufficient reasons for retail investors to pour their hard-earned money into Bed Bath & Beyond shares unless it’s only for a very short-term trade. Consequently, Bed Bath & Beyond has to prove to the shareholders that it can deliver results during these challenging times. For one thing, if you’re looking for Bed Bath & Beyond’s trailing 12-month price-to-earnings (P/E) ratio, don’t bother. The onset of COVID-19 made it difficult for retail store chains like Bed Bath & Beyond to deliver shareholder value. The influence that meme-stock traders have should never be underestimated. Also, these traders may view the short squeeze as a way to get revenge on short-selling hedge funds. It could be said that a short squeeze of BBBY stock is an expression of the meme-stock traders’ hope for a recovery in the economy. Therefore, it’s wise to maintain a safe distance and avoid getting caught up in the hype.

Bed Bath & Beyond Inc shares nosedived late in the session on Wednesday from a 45% surge earlier after investor and GameStop Chairman Ryan Cohen filed for a ...

We've seen the same with Chinese meme stocks over the past few weeks," Siddharth Singhai, chief investment officer at New York-based hedge fund Ironhold Capital. The stock had lost more than 60% of its value in June and July. On Wednesday, the shares rose up to $30 and closed down at $23.08. stocks that helped the S&P 500 recoup more than half of the benchmark's losses since its June low. Register now for FREE unlimited access to Reuters.com

BBBY stock has shot up, but GameStop's Ryan Cohen is selling his stake in the meme stock. Is Bed Bath & Beyond stock a buy or sell?

But is Bed Bath & Beyond stock a buy or a sell now? Technically, BBBY stock has been hot, but is greatly extended from moving averages and is now getting a lot of media attention. Bed Bath & Beyond, like most meme stocks, has terrible fundamentals, with a series of losses and fast-declining revenue. The New Jersey-based Bed Bath & Beyond has retail stores across the U.S. But after a meme stock gets moving beyond such areas, the risks are enormous, especially after investors and business media start paying close attention. BBBY stock arguably offered a super-aggressive entry on Monday, as it cleared the 200-day line. Of course, meme stock investors look past a company's weak fundamentals. Cohen's RC Ventures currently owns 11.8% of Bed Bath & Beyond, according to FactSet. Wall Street is projecting a loss of $6.22 per share for the full fiscal year on $6.5 billion in sales. Bed Bath & Beyond stock has been surging again in recent weeks. The activist investor seemed to have taken a specific interest in BBBY earlier this year. Or, by buying those out-of-the-money call options — and disclosing that — Cohen found a way to push up the BBBY stock and options prices before cashing out.