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Bed Bath & Beyond Set for Rebound as Meme-Stock Selloff Abates

Published 23/08/2022, 12:18
© Reuters
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(Bloomberg) -- Bed Bath & Beyond (NASDAQ:BBBY) shares climbed as much as 7% in premarket trading on Tuesday as the seller of home goods beloved by retail investors stages a rebound after three days of fierce declines. 

As of last close, shares in the firm had fallen 60% since the latest so-called meme-stock rally peaked last Wednesday. The plunge followed the disclosure by the company’s top investor Ryan Cohen that he was selling his stake, while a report that suppliers were restricting or halting shipments after the firm fell behind on payments contributed to the declines.

Cohen went on to offload all his shares in Bed Bath & Beyond, triggering a record 45% intraday tumble for the stock on Aug. 19 as he pocketed $68.1 million in profits. Retail investors have since been scaling back their purchases of shares in the firm, according to data from Vanda Research. 

Fellow meme-stock darlings AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME) were also trading higher in premarket trading. 

Meanwhile, future contracts for the S&P 500 and the Nasdaq 100 Indexes edged higher, indicating that the benchmark indexes might bounce back after Monday’s steep selloff. 

©2022 Bloomberg L.P.

 

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