CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Bed Bath & Beyond (BBBY) Reddit-fuelled rocket ride draws warnings of ‘unrealistic’ BBBY stock price

By Joyanta Acharjee

16:00, 17 August 2022

A Bed Bath & Beyond store in North America
Bed Bath & Beyond stock price soars on BBBY-Reddit meme stock interest – Photo: Shutterstock

A US home retailer’s stock has soared in recent days on the back of renewed retail investor interest as some analysts called for caution.

Bed Bath & Beyond (BBBY) stock was up 20% in US pre-market trading on Wednesday. For the month of August, the stock is up a spectacular 313%.

Founded in 1971, the company sells a wide assortment of merchandise in the home, baby, beauty and wellness segments.

Bed Bath & Beyond (BBBY) stock price

“We believe BBBY is currently trading at unrealistic valuations,” B.Riley analyst Susan Anderson wrote in a note quoted by MarketWatch.

“BBBY has recently gained the attention of retail traders in the Wall Street Bets Reddit forum again, which gained notoriety during the GameStop saga back in January 2021.”

Anderson’s firm has downgraded the stock to Sell.

Earlier this year the retailer reported poor quarterly earnings that led to the departure of CEO Mark Tritton, who had joined the company in 2019 from rival Target (TGT).

What is your sentiment on TGT?

Vote to see Traders sentiment!

Target (TGT) stock price

Recent performance

Earlier this year, former CEO Tritton explained that supply chain issues had negatively impacted earnings for the pre-Christmas shopping season.

“Unfortunately, despite strong customer demand, operational challenges such as vendor constraints locked inventory and our current ill-equipped legacy infrastructure impacted our ability to drive further improvements in sales trends,” Tritton explained in a January conference call.

By the time of its fiscal first-quarter earnings in June, the situation hadn’t improved.

Slide showing key Q1 data for Bed Bath & BeyondBed Bath & Beyond

Citing inflation pressures and ongoing supply-chain problems, fiscal first-quarter revenue totalled $1.46bn (£1.2bn, €1.44bn) for a $358m net loss, or $4.49 per share, worse than the $1.28 per share loss that analysts had been expecting.


22.79 Price
+2.270% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 0.14


4.78 Price
+3.100% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 0.09


166.24 Price
+1.020% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 0.14


948.55 Price
+2.530% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 21:00 (UTC)
Spread 0.11

Additionally, the retailer only had $107.5m of cash on hand, down 90% from the $1.097bn it had on its balance sheet a year ago.

“In the quarter there was an acute shift in customer sentiment and, since then, pressures have materially escalated. This includes steep inflation and fluctuations in purchasing patterns, leading to significant dislocation in our sales and inventory that we will be working to actively resolve,” interim CEO Sue Gove said in a statement.

“The simple reality though is that our first quarter's results are not up to our expectations, nor are they reflective of the company's true potential.”

Slide showing Bed Bath & Beyond's outlookBed Bath & Beyond

Ryan Cohen to the rescue?

Step forward entrepreneur Ryan Cohen. In March he disclosed an 11.8% stake in Bed Bath & Beyond and sent a letter to management outlining the company’s underperformance and suggesting possible remedies.

Cohen gained a social media following after taking a significant stake in North American video games retailer GameStop (GME) in 2020, joining the board in early 2021 at the same time as retail investor interest surged in the company on social media site Reddit.


Cohen eventually became chairman of GameStop in June 2021 and the brick-and-mortar retailer is adding other digital products to its consumer offering. He is also the founder of online pet retailer Chewy (CHWY).

Bed Bath & Beyond is no stranger to activist investors.

In 2019, hedge funds Legion Partners, Macellum Capital Management and Ancora Advisors sent a joint 150-page letter outlining the company’s underperformance under CEO Steven Temares and submitted a list of alternate board members.

Bed Bath & Beyond is due to update investors in its fiscal second-quarter earnings in September.

Markets in this article

156.79 USD
-3.42 -2.140%
Chewy, Inc.
16.33 USD
0.29 +1.820%
GameStop Corp (Extended Hours)
22.79 USD
0.5 +2.270%

Related topics

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 610,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading