Revenues continue to decline from their pre-pandemic quarters that were over $3 billion, due to a combination of brand divestitures, store closings, and general retail weakness. The business, however, is in a much different place now than it was back in late 2020. This means that yet again, Bed Bath & Beyond has become one of the most shorted names in the market, making it ripe for another squeeze.īed Bath and Beyond Short Interest (NASDAQ) The company's outstanding share count is also now below 80 million, and float data shows a figure under 70 million. However, as the graphic below shows, that was the highest reported bi-monthly figure from NASDAQ during 2022 so far. Since then, short interest has been roughly halved, down to about 29 million shares at the end of July. With management reducing the share count at a meaningful rate along with shorts needing to cover, the stock did surge in the first major meme stock rally. The company was also planning on buying back significant amounts of its own shares, which seemed like a very positive catalyst. At that time, roughly 60% of the outstanding share count was short, making the company one of the most shorted names in the market that had a valuation of at least $1 billion. I discussed the potential for a major short squeeze in this name back in late 2020 for a couple of reasons. Bed Bath & Beyond ( NASDAQ: BBBY ) was one of those names that has seen a number of these sharp spikes in recent years, and just like previous times, investors have to be extremely careful with the latest madness. Retail traders would post comments on forums like Reddit about highly shorted names that were bad businesses, and their stocks would soar in a matter of days. One of the key takeaways from 2021 in the market was the rise of the meme stock.
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