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Bed Bath & Beyond Shares Eye Rebound on Dawn of Strategic Update

Published 08/31/2022, 06:10 PM
© Reuters
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(Bloomberg) -- Bed Bath & Beyond Inc (NASDAQ:BBBY). rose in US premarket trading as investors geared up for a strategic update from the home-goods retailer, due before the opening bell.

Shares in the retail-trader favorite were up 3.6% as of 4:20 a.m. New York time, paring an earlier gain of as much as 6.5%, and set to rebound after dropping more than 9% on Tuesday in what is shaping up to be a volatile week. Fellow meme stock AMC Entertainment Holdings, Inc. (NYSE:AMC) was also up slightly.

While the focus of Bed Bath & Beyond’s “business and strategic update” is unknown, it will be watched closely following last week’s report that the company was said to be looking to mortgage its prized Buybuy Baby brand. Morgan Stanley analysts have previously said that cash burn and vendor support will also be in focus at the conference call, which is scheduled for 8:15 a.m. New York time.

It’s been a wild month for Bed Bath & Beyond shares amid a return of retail-trader interest. The stock jumped from a low of $4.89 at the start of August to an intraday high of $30 in the middle of the month, before paring those gains. It came under pressure recently after influential investor Ryan Cohen sold his stake in the firm, only to bounce back on the possibility of fresh financing.

Overall, the shares are down 17% this year on worries over a slump in sales and some suppliers halting or restricting shipments.

©2022 Bloomberg L.P.

 

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