Bed Bath & Beyond stock (BBBY:NSD) is experiencing a surge in popularity among retail investors this week. The company’s shares have seen a 30% increase, due to hype generated by investor Ryan Cohen’s cryptic tweet about a “great American brand.” However, as is typical with meme stocks, this momentum is unlikely to last.
Cohen, who is known as the “meme stock king,” has had a complicated relationship with BBBY stock. While his involvement in the company has generated excitement among retail investors, his decision to sell his entire stake in August 2022 resulted in a significant drop in share prices that the company has yet to recover from.
Unfortunately, BBBY’s recent surge in popularity is unlikely to be sustained. The company has flooded the market with new shares, despite the looming possibility of bankruptcy. Additionally, there is talk of a reverse stock split, a move that is often used by struggling companies with few other options. However, even if BBBY goes ahead with this plan, the outlook for the company is not positive.
To make matters worse, there are reports that the number of couples removing Bed Bath & Beyond items from their wedding registries is increasing, indicating that the company’s products are losing their appeal among consumers.
All of these factors point to a bleak economic future for the struggling retailer. While there is some excitement among retail investors about the possibility of Cohen getting involved with the company again, BBBY stock is likely to continue its downward trend. As a result, investors should be cautious before investing in the company.