Bed Bath & Beyond (BBBY) Stock Continues to Climb Ahead of Aug. 31 Update

  • Bed Bath & Beyond (BBBY) stock is rising again.
  • The catalyst is an Aug. 31 strategic update from interim CEO Sue Gove.
  • Professional analysts are saying sell, while Reddit’s r/WallStreetBets says buy BBBY stock.
BBBY stock - Bed Bath & Beyond (BBBY) Stock Continues to Climb Ahead of Aug. 31 Update

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Meme stock Bed Bath & Beyond (NASDAQ:BBBY) continues to fascinate investors. Shares rose nearly 25% on Aug. 29 and tacked on another 15% overnight. BBBY stock opened today at around $14.50, but has since fallen to about $13.60.

The shares have been volatile all year. They traded for more than $27 when Gamestop (NYSE:GME) chairman Ryan Cohen got on the board and demanded a breakup of the company. BBBY stock fell below $9 when he suddenly sold out his interest. Shares are trading today very close to where they started the year.

Now, the catalyst may be more fundamental: a “strategic update” expected Aug. 31 from interim CEO Sue Gove.

The Sleeping Giant

If BBBY could make some money, it would be worth far more than its present $1.1 billion. It did $7.3 billion in business last year. Even its “disastrous” May quarter saw revenue of $1.46 billion.

The trouble is it lost $358 million, or $4.49 per share, on those May quarter sales, leading to reports suppliers might halt product shipments. A new loan deal eased those worries, but only temporarily.

The retailer’s earlier plans, based on private labels and a more “curated” selection under former CEO Mark Tritton, have been abandoned. But how will BBBY raise cash, bring shoppers back, and solve its supply chain woes?  Will it sell Buy Buy Baby, a successful baby products chain Cohen wanted it to dump? Buy Buy Baby may not be worth as much now as before, given growing recession fears.

What Happens Next for BBBY Stock?

Professional analysts are telling meme investors to get out while they can. The average price target of 18 analysts surveyed by FactSet recently was $3.70 per share.

But on Reddit’s r/WallStreetBets, speculators still talk of a short squeeze or a bullish announcement and are telling small investors they should Hold on for Dear Life (HODL). These traders are unlikely to be convinced by the analysts’ warnings.

On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.

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