Retail investors have been focused on AMC Entertainment (NYSE:AMC) in recent days, hoping to send the movie theater operator to $100 — or the moon. This morning though, a new top dog on r/WallStreetBets is emerging. It seems that Bed Bath & Beyond (NASDAQ:BBBY) has caught the attention of the Reddit crowd. So, how high can BBBY stock go?
To start, investors should know that AMC has emerged on social media as the top short-squeeze play. The company is dominating social media trackers in terms of comment volume and positive sentiment. Plus, thanks to news of a new shareholder engagement program and a roughly $230 million cash injection, investors are hot on AMC stock.
This morning though, Bed Bath & Beyond is lurking in the shadows and looks ready to dethrone AMC. Shares of BBBY stock are up nearly 50%, and trading volume has already surpassed 58 million shares. That compares to an average volume of less than 5 million shares.
So what is happening with Bed Bath & Beyond?
Investors may recall that the retailer has been on a turnaround path since CEO Mark Tritton took over in November 2019. The former Target (NYSE:TGT) executive inherited a struggling business and has been working to change the narrative. This has required leaning into tech and e-commerce, and smart pivots through the Covid-19 pandemic.
Tritton has already refreshed the C-Suite, invested in digital solutions, closed unprofitable stores and divested brands like Cost Plus World Market. When the company reported earnings in April 2021, digital sales were up 86%.
However, BBBY stock still fell after earnings. As Lauren Thomas wrote for CNBC, many investors were hoping for positive revenue growth. They were also hoping to see steps like store remodels fully take hold. One complaint, as Thomas reported, is that stores resemble chaotic warehouses.
Redditors Grab Hold of BBBY Stock: To the Moon?
Importantly, the less-than-perfect earnings report is not enough to dissuade retail investors from latching onto BBBY stock in hopes of riding it to the moon. Since January, r/WallStreetBets has included Bed Bath & Beyond in the meme stocks group. According to the site Swaggy Stocks, BBBY is currently ninth in terms of comment volume on r/WallStreetBets.
However, in the last few hours, BBBY stock is looking to outpace AMC.
One reason for this could be a series of turnaround-focused announcements from the company. Today, Bed Bath & Beyond shared that it would be launching three new owned brands. According to the press release, these brands will ideally cater to younger consumers. Additionally, the company shared last week that it was working with DoorDash (NYSE:DASH) to facilitate greater same-day delivery services.
But perhaps more importantly, Bed Bath & Beyond is setting itself up as a short-squeeze target. According to data from Yahoo Finance, 30% of shares outstanding are being sold short. No doubt, that makes it a juicy option for folks on r/WallStreetBets.
On the date of publication, Sarah Smith 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.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.