Home goods retailer Bed Bath & Beyond (NASDAQ:BBBY) saw shares surge in Monday’s trading session despite the fact that it’s roughly within a breath or two of filing for bankruptcy. The company is poised to announce earnings tomorrow, so what’s driving that out-of-nowhere upward momentum?
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Bed Bath & Beyond did have a turnaround plan to its credit. It meant to improve its operations with vendors to get better terms and also looked to cut costs inside its huge retail footprint. These measures delivered some benefit, certainly. However, one of the biggest metrics for any retailer—sales—has yet to show much life. This didn’t slow gains much, though; at one point, the stock was up 75% in pre-market trading. However, the shares gave back most of those gains throughout the Monday session.
One major potential cause emerged, though: the return of the apes, pushing to drive up their meme stocks of choice. Some are even calling it a short-squeeze in progress as Bed Bath & Beyond’s plunging share price makes it a ripe target for takeover from outside sources. Given that Bed Bath & Beyond went on record expecting huge losses—$385.8 million for the quarter—the notion that someone might want a crack at the operation doesn’t seem out of line.
The last five days in trading for Bed Bath & Beyond shares suggest a company circling the drain. Three distinct stair-steps down in pricing emerged in the last five days before making a pronounced recovery today. The problem is that the latest stair step up only takes it back to where it was on January 5, and even then, not for long.
