Bed Bath & Beyond Leads Resurgence in Meme Stock Rally

Bed Bath & Beyond Leads Resurgence in Meme Stock Rally

A person leaves a Bed Bath & Beyond store in Manhattan, New York City, US, June 29, 2022. REUTERS/Andrew Kelly/File Photo

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Aug 17 (Reuters) – Shares of Bed Bath & Beyond Inc (BBBY.O) were up 23% on Wednesday, leading to a surge in meme stocks as individual investors continued to dabble in heavily shorted stocks.

Bed Bath & Beyond has won in 14 of the past 15 sessions, more than quadrupling the company’s market value in household goods to more than $2 billion. The stock last traded at $25.93 after rising to $30 earlier in the session.

“It’s a really quality company (but) stock is probably overvalued in the low teens and it’s ridiculously overvalued at high $20,” said Jake Dollarhide, chief executive officer at Longbow Asset Management in Tulsa, Oklahoma.

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Retail investors bought $73.2 million worth of company stock on Tuesday, the highest single-day purchase in at least five years, according to Vanda Research’s retail flow data. shopkeepers. read more

Bed Bath & Beyond was the most actively traded single stock option on Wednesday, well ahead of popular options trading including Apple Inc (AAPL.O) and Tesla Inc (TSLA.O), data from Options Clearing Corp.

The retail rebound comes after a rebound in US stocks that helped the S&P 500 recoup more than half of the benchmark’s losses since its lows in June.

Siddharth Singhai, chief investment officer at New York-based hedge fund Ironhold Capital.

Among others, the e-commerce company Vinco Ventures (BBIG.O) advanced 32% and the meal package delivery company Blue Apron (APRN.N) rose 8.7%.

About 55% of Bed Bath & Beyond’s free float is shorted, up 19% in the past 30 days despite the price hike, according to S3 Partners.

“While short sellers were pushed out as BBBY hit $10, $15 and $20 per share, there were other traders who saw (that) as attractive entry points on the short side,” said S3’s Ihor Dusaniwsky.

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Reporting by Medha Singh in Bengaluru, additional reporting by Bansari Mayur Kamdar; Editing by Maju Samuel

Our Standards: The Thomson Reuters Trust Principles.

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