Bed Bath&Beyond stocks are in demand again
2023.01.13 10:08
Bed Bath&Beyond stocks are in demand again
By Ray Johnson
Budrigannews.com – This week, after the 2022 market crash, an army of retail traders bought meme stocks at relatively “cheap” prices, led by a surge in Bed Bath & Beyond. Growing signs that inflation has peaked encouraged them to do so.
Shares of the struggling home goods retailer have increased by 300 percent since the company warned last week that it might file for bankruptcy protection, hitting three-decade lows. Retail traders have been speculating about a possible takeover deal on online forums.
Trading in Hertz Global Holdings (OTC:) is comparable to individual traders’ interest in Bed Bath & Beyond. Investors run the risk of losing their entire investment if an M&A deal between Inc. and Revlon Inc. does not materialize, which is a move that goes against conventional wisdom.
NASDAQ: Bed Bath & Beyond is in talks with potential lenders, Bloomberg reported on Thursday, and the talks are also looking into possible takeover bids.
After rising interest rates reduced the appeal of speculative trading last year, the U.S. consumer price inflation report on Thursday helped revive the rally in highly-shorted meme stocks. This was due to the growing belief that inflation has reached its peak.
Senior portfolio manager at CI Roosevelt Jason Benowitz stated, “The rally in risk assets has carried meme stocks in its wake,” adding that a sharp stock decline in the final month of 2022 and strong seasonality for January are also at play.
He went on to say, “Investors who sold for tax reasons in late 2022 might reinvest in early 2023.”
This week, the Roundhilll MEME ETF, which tracks an index of stocks with high short interest and high social media activity, gained nearly 12 percent, while the broader index gained 2.3 percent.
On Friday, shares of Bed Bath & Beyond fell by about 5% in pre-market trading.
“The hurdle to reach previous net-flow highs looks difficult, and any meme stock mania is poised to be short-lived, in our view,” Vanda (NASDAQ:) says, despite the renewed buying from retail investors. On Thursday, analysts said.
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