Shares of retailer Bed Bath & Beyond (NASDAQ:BBBY) soared more than 32% on Friday as it hit highs
not seen since early June. There was no press release or development behind the surge in price. The
stock soared on the same day that fellow meme stock AMC Entertainment Holdings (NYSE:AMC)
jumped by 19% following the announcement of its quarterly results and news of a special dividend. Bed
Bath & Beyond appears to have gone along for the ride.
Investors should remain cautious, however, as Bed Bath & Beyond's fundamentals remain concerning.
The company has incurred a net loss of $866 million over the trailing 12 months. Sales in its most recent
quarter totaled less than $1.5 billion and declined by 25% year over year. The company has also changed
its CEO as Bed Bath & Beyond continues to struggle in turning its business around.
Over the past 12 months, shares of Bed Bath & Beyond are down more than 70% as investors have
dumped this risky stock for the most part. There have been bursts in the stock's price but those are
largely due to speculation as opposed to the company becoming a more tenable investment.
Now, with consumers fighting off inflation and rising interest rates, it may not get any easier for the
business. That's why despite the recent jump in share price, investors are still better off avoiding Bed
Bath & Beyond as the stock could quickly give back these gains in the near future as there's little reason
to believe things will get any better.
