BBBY, EXPR, BBW, KOSS, BB: Could These 5 Reddit Faves Become the Next AMC Stock?

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the next AMC - BBBY, EXPR, BBW, KOSS, BB: Could These 5 Reddit Faves Become the Next AMC Stock?

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Reddit’s r/WallStreetBets seemed to capture lightning in a bottle with the success of GameStop (NYSE:GME). All in the name of giving power to the people and defeating hedge funds, the subreddit took GameStop shares to prices near $500. Now retail investors are once again working their magic — AMC Entertainment’s  (NYSE:AMC) success today proves that the subreddit is a force to be reckoned with.

Investors are sending AMC flying this afternoon. AMC stock doubled in today’s session, and trading volume was six times larger than the average. The savvy internet investors are coordinating an attack on short sellers, similarly to the GameStop squeeze.

If we’ve learned anything from this pair of short squeezes, it’s that retail investors have way more sway than we ever thought possible. Now, people are looking to the next big thing. What will be the next AMC or GameStop? Reddit already has some favorites in mind.

If you pay close attention, you might be able to jump on the next rocket ahead of the pack.

The Next AMC? Bed, Bath & Beyond (BBBY)

The front view of a Bed Bath & Beyond (BBBY) retail location in Indianapolis, Indiana.

Source: Jonathan Weiss / Shutterstock.com

Bed, Bath & Beyond (NASDAQ:BBBY), the home goods retailer, is one of r/WSB’s plays. The stock had a brief-but-major boost in the midst of the GameStop madness of January, reaching highs of nearly $53 before settling back down and treading water around $30.

BBBY is a heavily shorted stock, which is a huge statistic to be looking at when considering the next AMC. Over 64% of the BBBY float is short, meaning many investors are betting against it.

However, the company is on the up in the last few days, suggesting it’s getting a similar treatment to the previously squeezed stocks.

Today’s session in particular was kind to BBBY stock. Shares gained 62% on the session, closing above $44. And, trading volume suggests that investors are taking quite an interest. The day’s volume sits at 107 million, many times greater than the average trading volume of 4 million.

The big price increase comes as Bed, Bath & Beyond announces three new in-house product lines. The brands are coming in the next few weeks as part of the company’s turnaround plan. These three brands are the second set of new brands that the company has drummed up this year, and there are more planned for the rest of 2021.

You can read more about BBBY stock here.

Express (EXPR)

the storefront of an Express store in a mall

Source: Helen89 / Shutterstock.com

Express (NYSE:EXPR) is another stock that has long been on the r/WSB radar. While short sellers don’t have a huge presence in EXPR stock with only 7% of shares short, the retail company has a similar make-up to its moonshot predecessors that make it an interesting play.

Express is a clothing company that operates mainly out of shopping malls. Much like AMC, GameStop, and most every other company on this list, Express is highly dependent on brick-and-mortar retail. It was faltering even without the pandemic speeding things up.

EXPR stock first reached r/WSB in January, when it gained 30% from the GameStop hype. The stock is up another 36% on today’s session, with no news to speak of.

It only makes sense for WallStreetBets to move their efforts toward another mall retailer after things are through with GameStop and AMC. The model works, thanks to the many short positions held by hedge funds in that type of company. EXPR is already a widely discussed stock on the subreddit, so it’s best to keep it on your radar.

The Next AMC? Build-A-Bear Workshop (BBW)

A Build-A-Bear (BBW) storefront in Philadelphia, Pennsylvania.

Source: Helen89 / Shutterstock.com

Build-A-Bear Workshop (NYSE:BBW) is seeing some very welcome growth in the last week. The brick-and-mortar stuffed animal dealer has grown over 50% since May 25, and the company could be a prime candidate for a Reddit-fueled boost.

The Build-A-Bear model is already quite interesting. Customers go in, pick out the animal they want, which comes un-stuffed, and then they go around the store completing the assembly process of the toy with employees. The plush is stuffed, stitched shut, dressed in an outfit of the customer’s choice, and packaged up with an “adoption certificate.”

Obviously, this model is highly reliant on physical store locations, so it will be interesting to see how the growth fuels a turnaround plan. But, if AMC can do it, so can anybody else.

The gains for BBW stock come after some positive Q1 earnings, which saw earnings of 60 cents per share. There’s a lot of speculation over whether these gains are signaling growing fundamental strength for BBW. Pair that with the short 5% of total float, and you have a case for Redditors wanting to jump onto the cutesy company.

Koss (KOSS)

A Koss (KOSS) Porta Pro headset in a box.

Source: SiljeAO / Shutterstock.com

Koss (NASDAQ:KOSS) is different from the other meme stocks we’ve seen grasp the attention of r/WallStreetBets thus far, since its model is not rooted in brick-and-mortar retail. Rather, Koss is the manufacturer of headphones.

Koss has gotten airtime as a pandemic play, since staying at home watching movies and listening to music means that more emphasis is being placed on attaining crisp, clear audio. It got especially popular among the r/WSB crowd in the midst of GameStop’s rally.

Koss is one of the more shorted stocks on the list, making it a prime candidate to be the next AMC. Roughly 16% of the total KOSS float is short.

The stock is seeing quite the boom today in tandem with AMC and other meme stocks. Shares of KOSS closed nearly 70% higher, with shares trading at $41. The company is seeing a fivefold increase in trading volume as well, with over 19 million shares exchanging today alone.

The Next AMC? BlackBerry (BB)

A BlackBerry (BB) sign out front of a corporate office in Silicon Valley, California.

Source: Shutterstock

BlackBerry (NYSE:BB) is one of the funniest stocks on the list. After parting ways with its cellphone brand, the company has been trying to make a comeback in hot areas like cybersecurity and 5G. Retail investors, perhaps motivated by nostalgia, are desperately trying to prove short-sellers wrong.

Trading volume of BB stock is at 336 million shares, an increase from its 15 million average. The result is a 32% price increase on Wednesday.

Barron’s released an article today talking about BB’s price movement, and how analysts did not foresee such a boost. Much of the same can be said about the rest of the picks here. These stocks are not looked at for their fundamentals in the same way you might evaluate a stock for long-term growth.

These plays are selected because the buyers want to target short sellers and trigger a high-value short squeeze. BB, with 10% of its float sold short, is exactly the right candidate for such a thing. Keep it on your list of companies looking to be the next AMC stock.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.


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