Stocks Of Bed Bath & Beyond Surge As Meme Trading Booms

(CTN News) – As part of our Live show, Yahoo Finance’s Josh Schafer discusses Bed Bath & Beyond stock rise.

Transcript of video

Juli Hyman: Well, let’s move on to meme madness. The show is back. Shares of Bed Bath & Beyond are surging today as investors demonstrate that the meme trade is far from over. Josh Schafer from Yahoo Finance will be speaking with us about this topic.

SCHAFER, JOSH: Yes, Julie. During our visit to Bed Bath & Beyond, we took a look at the store. This was a couple of hours ago when we discussed the meme trade itself.

About 30 minutes ago, Bloomberg reported that the company has revived its bankruptcy preparations, and that it may be forced into bankruptcy at some point in the near future.

As far as we are aware, we have not confirmed that. Again, this is only a report from Bloomberg that was published within the last 30 minutes.

It is my understanding that a meeting with lenders is scheduled to begin within the hour and will continue throughout the day. The topic of bankruptcy has been discussed for some time now, generally, for Bed Bath & Beyond.

It is evident from what they circled that the stock has declined almost 98% over the past year. Therefore, we have been closely following this story.

It should be noted that the date we circled here was May 9. To provide more liquidity for Bed Bath & Beyond, we were waiting to see whether that $0.46 stock would undergo a 10-to-1 split or a 20-to-1 split.

That was supposed to happen on May 9, and it was expected to be a key date because if they do not get that split, Bed Bath and Beyond would be unable to continue operating. Now, it appears that might be happening much faster than we had initially anticipated.

Julie Hyman: There has to be some sort of trade going on if people are doing this. Buying it is not something I could imagine doing, like hoping that Bed Bath & Beyond would survive.

I also noticed one interesting thing, too. When we compare where a stock opens and where it closes, right, and, sort of, what is already baked into a stock price when we start the day, we often discuss these stocks, such as Bed Bath & Beyond, which is up 32% at the moment, having increased about 23% before the market opened.

Traditional retail investors who only trade during market hours may miss out on the part of the trade related to meme plays if they are trying to get involved in these plays.

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