Shares of Bed Bath and Beyond (NASDAQ:BBBY) stock are skyrocketing higher on Wednesday morning on what appears to be no news from the company.
Source: Shutterstock
So, what is causing this major jump in the share price? Let’s take a closer look to find out:
- It appears that BBBY stock is benefitting from Reddit’s r/WallStreetBets crowd.
- This group of individual investors have recently bought millions of shares of specific companies in what is called a short squeeze.
- These people are buying GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC) and BBBY stock in droves. In turn, this drives up the share price.
- Meanwhile, “…hedge funds rush to cover their losses from shorting the stocks.”
- BBBY stock took off prior to market open today, and has built momentum over the past five days.
- In fact, shares are up more than 70% over that span.
BBBY stock was up 22% as of Wednesday morning.
More on Reddit WallStreetBets
- Reddit’s Wall Street Bets: 5 WSB Stocks That Could Be the Next GameStop
- AMC Stock: The Next Reddit WallStreetBets Stock of the Day?
- Reddit Traders Squeeze GameStop, And These 5 Stocks Could Be Next
- How Reddit Sent GameStop Up 2,800% — And 7 Stocks That Could Be Next
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick is a web editor at InvestorPlace.
