- Bed Bath & Beyond stock soared 42.2% on Wednesday, marking a third straight gain.
- The rally comes amid warnings of a potential bankruptcy and a bleak third-quarter report.
- Akin to GameStop and AMC, Bed Bath & Beyond has been a favorite among meme-stock traders.
Bed Bath & Beyond has surged 105% in the past three days as the stock rallies in the face of financial headwinds and outsized losses.
On Wednesday, shares were up 42.2% at $3.20, after CNBC reported late Tuesday that the home furnishings retailer was laying off more staff.
The rally comes amid warnings of a potential bankruptcy and a bleak fiscal third-quarter earnings report. Inventory snags have weighed down the company’s performance.
In addition to layoffs, Bed Bath & Beyond is enacting a slew of cost-cutting measures as the chain explores restructuring options. The company released a list of 120 plus closing stores on Tuesday, adding that it’s aiming at $80 million to $100 million in further cost savings.
“We continue to manage our financial position amidst a changing landscape and work with expert advisors as we consider all paths and strategic alternatives to accomplish our short- and long-term goals,” CEO Sue Gove told the Wall Street Journal.
Bed Bath & Beyond has been a favorite among meme-stock traders. And on Wednesday other stocks that were caught up in the early 2021 frenzy were up too. AMC rose 15%, GameStop 7%, and Carvana 22%.
“We don’t love the strength in nonsense stocks like AMC, CVNA, GME, BBBY, PRTY, etc.,” Adam Crisafulli, founder of TK Vital Knowledge, told CNBC. “This just means people are blindly chasing.”
This post was originally published on Business Insider
