Bed Bath & Beyond (BBBY) shares spiked as much as 85% during Monday’s session, trading above $5.65 each as a recent rally in the nearly-bankrupt retailer continues to gain momentum.
Shares of the embattled retailer are heavily shorted, with short interest on BBBY standing at about 53% of the float, according to data compiled by S3 Partners.
Bed Bath & Beyond has been trying to conserve cash as it teeters on the edge of bankruptcy after accruing up more than $1 billion in debt and losses by the end of 2022.
The company recently warned in a recent regulatory filing it was hit with a default notice from JPMorgan and does not have adequate funds to repay its loans.
Meme stocks overall have rallied over the past month as some of the trades reminiscent of the “meme craze” of 2021 have regained popularity so far this year.
GameStop (GME) is up 26% year-to-date and AMC (AMC) shares have gained 58% since the start of 2023.
Bed Bath & Beyond stock hit a 52-week low of $1.27 on Jan. 6th, with shares more than quadrupling since.
Investors have taken a risk-on approach over the past month, with AI-related equites joining beaten up tech names as the biggest winners in addition to meme names from yesteryear.
Artificial intelligence maker C3.ai (AI) was up 3% on Monday, while smaller-cap, lesser-known names like BigBear.ai (BBAI) soared 10%, and voice AI company SoundHound (SOUN) spiked 32%.
Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre
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Source: https://finance.yahoo.com/news/bed-bath–beyond-stock-rallies-85-as-meme-stocks-soar-201216597.html