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Bed Bath & Beyond Shares Soar More Than 80% in After-Hours Trading
Bed Bath & Beyond Shares Soar More Than 80% in After-Hours Trading
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Among the news, Bed Bath & Beyond announced the launch of a digital
marketplace that will sell goods from third-parties, in addition to a tie-up with
grocery chain Kroger.
The home goods retailer also said its stock buyback program was ahead of
schedule and it unveiled some executive leadership changes.
But the significant spike after the market’s close was likely fueled by a so-
called short squeeze.
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11/8/21, 12:23 AM Bed Bath & Beyond shares soar more than 80% in after-hours trading
VIDEO 00:57
Bed Bath & Beyond and Kroger team up on e-commerce, in-store pilot
Bed Bath & Beyond shares soared more than 70% in extended trading Tuesday after
the retailer put out a flurry of press releases.
Among the news that the company announced was the launch of a digital
marketplace that will sell goods from third-parties, in addition to a tie-up with
grocery chain Kroger. Bed Bath & Beyond also said its stock buyback program was
ahead of schedule, and it unveiled some executive leadership changes.
But the sharp spike after the market’s close was likely fueled by a so-called short
squeeze, in which hedge funds that had bet against the stock were forced to scramble
and buy back their shares to cut their losses.
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11/8/21, 12:23 AM Bed Bath & Beyond shares soar more than 80% in after-hours trading
Bed Bath & Beyond was among the most heavily shorted stocks in the country with
27% of its shares available for trading sold short. That’s the third-highest among the
1,500 largest U.S. stocks, according to FactSet.
There was also a huge jump in mentions on Reddit after the bell, according to
sentiment tracker Swaggy Stocks. Bed Bath & Beyond was a meme crowd favorite
earlier this year, joining the likes of GameStop and AMC Entertainment, before
falling out of favor as the retail trading movement lost some momentum.
Bed Bath & Beyond shares rallied 9.6% during regular trading Tuesday to $16.75.
The shares popped dramatically in after-hours trading on heavy volume.
Seymour Asset Management founder Tim Seymour said on CNBC’s “Fast Money”
that Bed Bath & Beyond’s shares have been fueled by the interest of newer and
nontraditional investors.
“There are a number of these broken companies that are finding ways to reinvent
themselves,” he
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trading of stocks
said, referring to the volatile based on Reddit
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11/8/21, 12:23 AM Bed Bath & Beyond shares soar more than 80% in after-hours trading
The company said Tuesday it would create a digital marketplace to establish a bigger
presence online. It offered few other details on when the platform will launch and
how exactly it will work.
Separately, it said that Kroger — the country’s largest supermarket chain — will start
selling some of Bed Bath and Beyond’s home and baby products on its website and in
select stores as part of a pilot starting in 2022.
A Kroger spokeswoman said the number of stores, along with more details, will be
announced at a later date.
Bed Bath & Beyond also named Anu Gupta as its chief growth officer, a newly
created position. She previously served as Bed Bath & Beyond’s chief strategy and
transformation officer.
The company also tapped Rafeh Masood as chief customer officer, another newly
created role. Masood was previously Bed Bath & Beyond’s chief digital officer and
interim chief brand officer.
Bed Bath & Beyond also said it expects to complete a $1 billion share repurchase
plan by the end of
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ahead of schedule.
fiscal 2021, two years
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11/8/21, 12:23 AM Bed Bath & Beyond shares soar more than 80% in after-hours trading
Positive developments
GlobalData Retail managing director Neil Saunders said Bed Bath’s announcements
are positive developments.
“Anything with the use of the word ‘marketplace’ and ‘digital sales’ and things like
that tends to have a very positive inflationary effect on stock,” he said. Yet, he added
that the company has lagged behind its competitors and struggled to refresh its
brand.
Saunders also said that homewares sales are poised for a slowdown after a spike
during the pandemic. The sticker shock consumers are facing from inflation is likely
to add further pressure in the category as is the desire to spend money on travel and
dining out again.
“I can see why they’re going up. Why they’re going up by that magnitude, it’s a bit of
a puzzle,” he said. “But then many things on Wall Street, and stock movements, are a
puzzle. They’re irrational movements sometimes.”
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11/8/21, 12:23 AM Bed Bath & Beyond shares soar more than 80% in after-hours trading
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