Bed Bath & Beyond stock plummets on abysmal earnings – The Average Joe

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    Bed Bath & Beyond stock plummets on abysmal earnings

    victorlei

    June 29, 2022

    Is Bed Bath & Beyond (NASDAQ:BBBY) the next company to go under? It’s looking more and more likely…

    Yesterday, the retailer reported earnings that fell way short of estimates — and its CEO Mark Tritton is getting the boot.

    • Same-store sales crashed 24%, and losses grew to $358M, up from a $51M loss a year ago.
    • $BBBY only has $107M left in the bank, and a Loop Capital analyst said the company will likely fold in under a year (YF!).

    Per Vital Knowledge Adam Crisafulli, “investors expected the worst out of Bed Bath & Beyond, and they still disappointed” (BBG). $BBBY fell 24% yesterday and is down 66% for the year.

    It’s a tough time to be a retailer. Changing consumer buying patterns made it hard to forecast what to keep in stock — leading to excess inventory piling up. A recession would also have a significant impact.

    Meme days: $BBBY went meme mode twice in 2020 and 2021, but this time, investors are bailing on $BBBY, with Oanda seeing significant outflows.

    • Ryan Cohen, the man who took a major stake in GameStop and helped turn it into a meme stock — also took a $BBBY stake in March.

    Revlon (NYSE:REV) saw a massive jump in recent weeks after filing for bankruptcy. But gains were shortlived as its stock has fallen over 40% from its peak last week.

    What have we learned from meme stocks? It doesn’t end well for investors that get in late.

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