Bed Bath & Beyond soars 50% as meme-stock chatter around the struggling retailer surges
Bed Bath & Beyond soared as much as 50% on Monday as meme-stock traders turned their attention to the retailer.
It was the most mentioned stock on Reddit's Wall Street Bets forum on Monday.
Meme stocks including GameStop and AMC were also surging during Monday's trading session.
Bed Bath & Beyond stock soared as much as 44% on Monday as meme-stock traders generated momentum behind shares of the heavily shorted retailer on Monday.
Shares rose to $11.79 as of 10:30 am ET, up from $8.16 on Friday's close. According to data provider Quiver Quantitative, Bed Bath & Beyond was the most talked-about stock on Reddit's popular Wall Street Bets forum.
"Took out a 27k loan, went all in on BBBY," one user claimed in a popular post Monday morning. Another user claimed to have put in $45,000 into the stock, calling it one of the "best deep value" trades of this year.
Mentions of Bed Bath & Beyond on the subreddit jumped from 375 at the beginning of the day Monday to 988 as of 10:00 a.m. ET.
Bed Bath & Beyond wasn't alone among meme stocks to soar on Monday. Shares of GameStop and AMC were also surging, as investors shift to risk-on in the wake of Friday's jobs report and ahead of this week's Consumer Price Index reading, due out on Wednesday.
The retailer's share price has been on a rollercoaster ride this year, rising 24% as chief executive Sue Gove bought over $230,500 of shares, and dropping by nearly the same amount earlier in June, after the company reported net loss of $358 million in the past quarter.
In its earnings report, the company said it had been slammed by inflation and low demand. The stock is down 27% from the start of the year.
The company has also been criticized by some analysts for poor execution on its sales strategy. One analyst predicted earlier this summer that the stock would plunge another 50% and that the company could be in its final days.
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