Meme stocks slide after Monday’s surge

Yahoo Finance's Brian Cheung breaks down short interest in Bed Bath & Beyond and how meme stock trading activity has continued.

Video Transcript

BRIAN CHEUNG: Well, time now for our Chart of the Day. And today we want to check in on the meme stocks because a major contributor to that run-up in Bed, Bath & Beyond, which we've already been talking about, short squeezes. The amount of shares that have been sold short representing about 58% of total shares floated.

That's according to Ihor Dusaniwsky over at S3 Partners. He actually told our morning show earlier this morning that the standard amount of short interest you usually tend to see is about 5.2%, which means that Tesla, for example-- I put this here just for comparison-- much less than that normally, but 58% certainly unusual, Akiko.

AKIKO FUJITA: So is that kind of where we're back to? I mean, the short interest is drawing the interest on the other end from--

BRIAN CHEUNG: Well, the idea--

AKIKO FUJITA: --those to squeeze?

BRIAN CHEUNG: Exactly, the short squeeze, right? Because a lot of retail investors or people maybe on the GameStop fever on Reddit are saying, hey, these are targets that if we can get those short covers to explode, the stock's going to go back up.

But for what it's worth, if we just kind of check, by the way, because we need to do this every few minutes, how these stocks are doing, Bed, Bath & Beyond down 15% this morning. So again, maybe not so great. We'll see. It feels like the story is not over. Coming up, though, on the other side, is the United States' biggest container port seeing any relief from supply chain pressures? We'll discuss on the other side.