BBBY stock

Bed Bath & Beyond shares have been skyrocketing in recent weeks. Here's why the rally may not end anytime soon.

This can indicate that the current trend — in our case, BBBY's stock rally — will continue for some time. A week later, on Friday, August 12, open interest increased to about 62,800 call option in-the-money contracts. It can be used to measure the value of options contracts that have been created but not yet closed. This is likely connected to recent short squeezes in BBBY. Check out this chart below, which illustrates sentiment for the stock on WSB: But the stock's popularity is also growing on Reddit as a whole. Reddit's r/wallstreetbets (WSB) subreddit is probably the most influential online forum when it comes to retail investors.

Bed Bath & Beyond stock (BBBY) skyrocketed by nearly 70% in afternoon trading on Tuesday as Reddit traders speculated on a massive short squeeze. Shares were ...

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Bed Bath & Beyond jumped as meme stock traders piled in, encouraged by GameStop chairman Ryan Cohen placing another bet on the struggling retailer.

Now under Gove, Bed Bath is trying to turn the ailing business around, but analysts remain unsure it will succeed. This came after the company suffered another quarter of sluggish sales and heavy losses. He also urged the retailer to consider selling its Buybuy Baby chain. The new purchase grabbed the attention of retail traders on Reddit's WallStreetBets forum. The strike price is where the security can be bought by the option holder, meaning Cohen is betting that Bed Bath & Beyond can rise as high as $80 a share. The stock closed Monday at $16.

Today, retail investors appear to be getting very interested in BBBY stock following a very out-of-the money bet by Ryan Cohen.

Accordingly, retail investors seem to be taking the bet as a sign more upside is on the horizon. Accordingly, Ryan Cohen appears to have made this bet before it was popular to do so. This meme stock rally may have more room to run, considering today’s price action across a range of high-profile meme stocks.

Meme stocks are back. Both GameStop (GME) and Bed Bath & Beyond (BBBY) saw their stock prices spike on Tuesday, an echo of the huge swings in meme stock ...

Its price has since dropped back to [slightly under $200](https://www.google.com/finance/quote/HKD:NYSE). Retail investor favorite GameStop ( [GME](https://www.google.com/finance/quote/GME:NYSE)) also saw a similar spike and fall. [Started in 2012](https://money.com/wall-street-bets/) by Jaime Rogozinski, the community message board has since experienced drama related to [removing moderators](https://www.insider.com/wallstreetbets-reddit-bans-moderators-gamestop-started-movie-deal-coup-2021-2) with possible conflicts of interest. At some point in a meme stock's rise, owners of the stock start to cash out, bringing the price downward again. As early adopters convince investors to buy in, the price starts to rise, attracting more investors struck by FOMO ("fear of missing out"). Popular online brokerage [Robinhood froze trading for GameStop](/personal-finance/investing/robinhood-backlash-what-you-should-know-about-the-gamestop-stock-controversy/) and other meme stocks, earning the ire of both investors and politicians, as well as a [class-action lawsuit](https://cointelegraph.com/news/robinhood-to-face-class-action-lawsuit-from-meme-stock-debacle-report). For any meme stock to make a noticeable spike in price, enough investors need to be convinced to buy the stock. An increase in contributors to the subreddit in the late 2010s was likely fueled by the rise of no-commission brokerages like Robinhood and mobile stock trading. [GameStop exploded in price](/personal-finance/investing/stock-market/sec-says-gamestop-stock-surge-due-to-individual-investors-doesnt-recommend-policy-change/) due to large groups of retail investors promoting massive purchases online. Meme stock companies are promoted in online message boards and on social media sites like Reddit, YouTube, Twitter and Facebook, typically through the sharing of memes. What are meme stocks and why are they making news in the stock market now? Last Tuesday, Bed Bath & Beyond's stock price (

Bed Bath & Beyond (BBBY 29.06%) stock was soaring once again today as the short squeeze in the meme stock accelerated, attracting more traders on platforms ...

[meme stock](https://www.fool.com/investing/stock-market/types-of-stocks/meme-stocks/) rally is that it's mistake to bet against the meme traders. Bed Bath & Beyond stock is now up nearly 700% since July 26, and with the stock going parabolic today, that could mean that the rally will fizzle soon, as that kind of price action is usually a sign of volume peaking. [short squeeze](https://www.fool.com/investing/how-to-invest/stocks/short-squeeze/) like the ones we saw in stocks like GameStop and AMC Entertainment last year. Shortly before noon, the trading volume had reached more than 200 million, meaning the average share had already been traded more than once. One Bed Bath & Beyond (BBBY) thread on WallStreetBets had more than 9,000 comments in the last two hours, touting price targets like $60 and $80 as well as rampant call-option buying in order to accelerate the short squeeze, or [gamma squeeze](https://www.fool.com/investing/2021/01/28/what-is-a-gamma-squeeze/) as they're known with options. Today was the 14th gain out of the last 15 sessions for the stock.

Reddit's new favorite meme stock is doing what meme stocks do: spiking to an unsettling degree. This time the stock symbol riding the r/wallstreetbets ...

[risky $45,000 investment](https://www.reddit.com/r/wallstreetbets/comments/wizna5/i_am_the_guy_who_10xd_a_45k_yolo_in_bbby_the/) in the company. [eyed by analysts](https://mashable.com/article/bots-gamestop-meme-stocks) for allegedly feeding off the activity of social media bots — particularly in the cases of Reddit favs AMC and GameStop. And now [some commentators](https://seekingalpha.com/article/4534815-bed-bath-and-beyond-massive-short-squeeze-is-coming-soon) are predicting a "short squeeze" — a spike in a stock price that occurs when those who have bet against the stock rush to exit their toxic investment by buying the stock in question, thus driving up the price drastically. Naturally, r/wallstreetbets took notice, with one post praising Cohen as " [the meme king](https://www.reddit.com/r/wallstreetbets/comments/t8d51u/chewy_cofounder_ryan_cohen_takes_large_stake_in/)," and saying "Ryan Cohen will never be matched," earning 10,423 Reddit karma points. [made about $700 million from the Gamestop Reddit phenomenon](https://www.cnbc.com/2022/01/27/the-fund-that-made-700-million-on-gamestop-knew-it-was-time-to-sell-after-an-elon-musk-tweet.html), are often the ones who make the most money from meme stocks. The stock saw a brief spike in March, and then about five months of steady decline.

Investors appear to be back making speculative bets and giving rise to meme stocks following the recent selloff in the stock market. Bed Bath Beyond (BBBY), ...

Apart from BBBY, PGY, and HKD, more meme stocks should emerge as investors turn to speculative trades to bet on the market recovery. The AMTD Digital rally has all the features of a meme stock. PGY stock has gained more than 700% over the past month to trade above $20.

Bed Bath & Beyond (BBBY) stock is soaring over 30% in pre-market trading. A famous investor bought call options on BBBY stock.

[call options have](https://www.bankrate.com/investing/what-are-call-options-learn-basics-buying-selling/) “strike prices between $60 and $80” and [expire in January](https://investorplace.com/2022/08/ryan-cohen-just-gave-bed-bath-beyond-bbby-stock-a-huge-boost/). On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Cohen initially gained fame as the founder of Chewy (NYSE: [CHWY](https://investorplace.com/stock-quotes/chwy-stock-quote/)), an e-commerce firm that focuses on products for pets. The disclosure of Cohen’s call options appears to have excited retail investors, in turn lighting a fire under BBBY stock. For Cohen to make money on each option, the price of Bed Bath and Beyond’s shares has to exceed the option’s strike price when he redeems it. [AMC](https://investorplace.com/stock-quotes/amc-stock-quote/)) stock advancing [42% over](https://www.marketwatch.com/investing/stock/amc?mod=search_symbol) the last month, Koss (NASDAQ: [KOSS](https://investorplace.com/stock-quotes/koss-stock-quote/)) climbing 32% [during that time](https://www.marketwatch.com/investing/stock/koss?mod=search_symbol) frame, and Fubo (NYSE: [FUBO](https://investorplace.com/stock-quotes/fubo-stock-quote/)) delivering [a return of 122% over](https://www.marketwatch.com/investing/stock/fubo?mod=search_symbol) the last month.

How exactly did the home goods chain, which recently dismissed CEO Mark Tritton, reach "meme stock" status?

“There was a mismatch between when the demand was estimated, when the supply actually happened, compounded by the supply chain challenges in the industry,” Arnal said. For the full year, the financial services company expects EPS to come at a loss of $6.45, even deeper than the prior estimates of $5.13. The phenomenon is known as a short squeeze, when a high number of institutional investors like hedge funds “short” a stock, effectively betting that its share price will drop. “We anticipate investors will be focused on sales trends throughout the quarter as BBBY increased their marketing efforts including introducing a new loyalty awards program,” Anderson said. So there is that dynamic on the mismatch on supply chain and demand or current consumption.” We have seen the stock increase more than 3x since BBBY reported a very weak Q1 leading to the ousting of CEO at the time Mark Tritton,” Anderson’s note said. An option gives a trader the right to buy or sell a stock at a given price on a given date. The rally came despite the early morning release of a specialty retail analysis from B. Other “meme stocks” like GameStop and AMC have used their prior stock boosts to raise capital through an at-the-market (ATM) offering to help generate cash. In June, BBBY saw net sales plummet 25 percent to $1.46 billion, with digital sales dropping 21 percent. As of 3 p.m.Tuesday Bed Bath & Beyond stock was $21.80, nearly 36.25 percent higher than its $16 price point when trading started at 9:30 a.m. Buying a call option is essentially betting the stock will rise in price.

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.

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.

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.

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.

In order to short a stock, investors first have to borrow it. At Bed Bath & Beyond that borrowing fee comes to 50%, way more than the typical S&P 500 stock.

[Unlike on Tuesday, ](https://www.barrons.com/articles/bed-bath-beyond-koss-gamestop-amc-stock-price-meme-rally-51660685560?mod=article_inline)though, the rally didn’t extend to other meme stocks. And it’s not getting any easier for [prospective short sellers](https://www.barrons.com/articles/bed-bath-beyond-stock-meme-trade-51659971172?mod=article_inline), either. stock (ticker: BBBY) was up another 31% in Wednesday afternoon trading to $27.02.

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.