Bed Bath & Beyond has surged 105% in 3 days as the meme stock rallies in the face of potential bankruptcy
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- 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."