Reddit Bros Are Sending Bed Bath & Beyond's Stock To The Moon… Even Though It’s About to Go Bankrupt
I love the smell of nearly bankrupt companies mooning in the afternoon.
The latest one pump chump? Bed Bath & Beyond. Despite giving some really, really strong hints that it would file for bankruptcy last week, and dropping a dumpster fire of an earnings report today, shares rose 25% yesterday… and are making similar moves today.
It looks like the Reddit crowd and Davey Day Trader Disciples are back on their bullshit…
Reuters - Shares of Bed, Bath & Beyond Inc rebounded sharply in high volume trading on Monday amid speculation by retail investors that the struggling home goods seller might be a potential acquisition target.
Online retail stock forums, including Reddit, have been buzzing about a possible M&A deal, fueling a buying frenzy reminiscent of the "meme stock" phenomenon of 2020, in which shares of troubled companies such as GameStop Corp (GME.N) and AMC Entertainment Holdings (AMC.N) soared amid viral interest on forums such as WallStreetBets.
Bed, Bath & Beyond's stock lost nearly half its value last Thursday and Friday after the company warned it may not be able to carry on as a going concern and may have to seek relief through bankruptcy.
For what it’s worth, it’s not unheard of for retail bros to pile into stocks on the brink. Perhaps that’s why we get such a bad rap?
Hertz was the OG. Back in 2021 the car rental company saw its shares moon nearly 600% after it filed for bankruptcy. And the mouth breathers pouring money into the "worthless" company actually managed to turn a profit.
Friendly reminder: in most cases shareholders are wiped out in a bankruptcy proceeding and debt holders are left to pick at the carcass for whatever is left.
And more recently Revlon popped soon after hinting at bankruptcy. Large and I doubled our investment almost overnight on that one. No big deal.
PS - Tons of news premier retail space about to come on the market for Spirit Halloween
PPS - Want more business and markets news? Follow me and Barstool Finance on Twitter for real time news and commentary. I also write The Water Coolest, Barstool's daily business and markets newsletter. It hits your inbox at 6 AM and covers all the finance and markets stories you need to know. JOIN NOW >