Bed Bath & Beyond stock plummets on abysmal earnings
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.