Delivery Via DoorDash Makes Bed Bath & Beyond More Than A Meme

Due to Covid-19, it’s fair to say that 2020 was an eventful year for retailer Bed Bath & Beyond (NASDAQ:BBBY). And thanks to the ongoing meme stock mania, 2021 is likewise shaping up to be quite interesting for BBBY stock traders.

bed bath & beyond storefront (BBBY)
Source: Shutterstock

In the wake of the pandemic, Bed Bath & Beyond has transitioned to a new business model in which the company has “unlocked” its digital-first, omni-always potential,” according to a recent investor presentation.

On the other hand, some traders haven’t been particularly concerned about Bed Bath & Beyond’s revised business strategy. Instead, they’ve been mesmerized by the wild price action of BBBY stock and its status as a meme stock.

Perhaps it’s time to move past the labels and focus on the company itself. Indeed, a value-added partnership should convince traders to look beyond the meme and see what Bed Bath & Beyond has to offer.

BBBY Stock at a Glance

During the peak of the Covid-19 crisis last year, BBBY stock dipped as low as $4. By the end of 2020, however, much of the panic had subsided and the share price had already recovered the $17 level.

Yet even as the stock climbed upwards, it would have been difficult to predict what happened in early 2021. For whatever reason, Reddit and Robinhood traders set their sights on Bed Bath & Beyond as a short squeeze target.

It would be hard to find any other logical explanation as to why BBBY stock went vertical in January. Astoundingly, the share price shot up to a 52-week high of $53.90 near month’s end.

This run-up was followed by a precipitous drop to $25 in early February. This wasn’t the only seemingly meme-fueled rally, though.

Bed Bath & Beyond shares unexpectedly zoomed to $44 in early June, only to fall again soon afterwards.

At this juncture, investors can choose to obsess over the memes or direct their attention to the company’s value proposition. Which will you choose?

Focused and Ready

I can’t speak for Bed Bath & Beyond CEO Mark Tritton, but some of his recent quotes suggest that he’s choosing not to worry about the memes too much.

Not long ago, BBBY stock was worth 155% more than when Tritton was named CEO (which occurred on Oct. 9, 2019). So, we might conclude that Tritton’s a highly effective executive.

On June 2, 2021, in the midst of the second meme stock spike, Tritton kept his cool. Instead of getting caught up in the hype, he concentrated on what’s truly important.

Even as his company’s shares were up by more than 40% in a single day, Tritton commented, “I think today’s activities are just a day in time. It doesn’t affect us operationally. We are focused and ready.”

Moreover, Tritton redirected investors’ attention towards Bed Bath & Beyond’s continued fiscal progress.

“Regardless of the stock movement our role is to create sequential growth and strength at both the balance sheet and in growth ratios. We believe we have been doing that,” he said.

Going Digital-First with DoorDash

Speaking of creating growth and strength, Bed Bath & Beyond issued a pair of press releases indicating the company’s continued expansion into a digital-first business model.

In late April, Bed Bath & Beyond revealed that it’s partnering with DoorDash (NYSE:DASH) to offer same-day delivery service in Canada.

This is a sensible move for Bed Bath & Beyond, as today’s online shoppers often expect same-day delivery.

About a month later, Bed Bath & Beyond forged a similar arrangement with DoorDash for U.S.-based customers.

With that, “Bed Bath & Beyond and buybuy BABY websites will expand same day delivery to over 3,000 additional zip codes across the country.”

The Takeaway

Traders should appreciate Bed Bath & Beyond’s collaboration with DoorDash as the company pursues its digital-first strategy.

Just as importantly, investors don’t have to think of BBBY stock as a meme stock.

The company’s CEO wants people to focus on Bed Bath & Beyond’s fundamentals — and when the fundamentals are this good, that’s a very sensible thing to do.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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