Reddit darling Bed Bath & Beyond skyrockets up to 90% in short squeeze likely after revealing Kroger’s association
- Bed Bath and Beyond grew 90% after-hours on Tuesday and increased over 50% in pre-market, likely due to a short squeeze.
- The Reddit frontrunner revealed a tie-up with Kroger and ramped up its share buyback program.
- Data showed BBBY was the third most mentioned stock on Reddit’s Wall Street Bets on Tuesday.
Shares of Bed Bath & Beyond jumped 90% in Tuesday’s after-hours session after the housewares retailer revealed a partnership with grocery chain Kroger and the early termination of its program of billion dollar share buyback.
The tie-up with Kroger will allow the company to sell a range of its home and baby products through the grocery chain’s online point of sale and select physical stores, starting in 2022. At the same time , Bed Bath & Beyond has announced plans to launch its own digital. marketplace in the same product areas that will include third-party brands.
Shares of the retail chain rose 91% to $ 32 a share at some point in extended trading after press releases on Tuesday. But they were more subdued in Wednesday’s pre-market session, last trading 53% at $ 25.61 per share.
Despite the flurry of press releases, the rise in Bed Bath & Beyond likely appears to be due to a short contraction – when the price of a short stock rises rather than falls, forcing short sellers to hedge their positions.
The dynamic meme stock trading of the start of the year began with amateur investors coming together to identify very short-short stocks that they could buy in droves, hoping to rack up quick profits.
Bed Bath & Beyond is among the most popular memes stocks of this crowd. It was the third most positively mentioned stock on Reddit’s Wall Street Bets Tuesday, according to data from sentiment aggregator Swaggy Stocks.
Along with updates to online retail operations, Bed Bath & Beyond said on Tuesday it would complete its $ 1 billion share buyback program by the end of February, two years ahead of the date. planned. After having already completed $ 600 million in share buybacks, there is still $ 400 million in buybacks.
Bed Bath & Beyond also revealed more details about its efforts to rebuild its business.
“To further enable business transformation through these growth partnerships and expanded capabilities, Bed Bath & Beyond is realigning its organizational infrastructure and refreshing its leadership team to support its stronger business model,” the retailer said in a statement.
As part of new executive appointments, Anu Gupta has been appointed Director of Growth and Rafeh Masood has been appointed Director of Clientele.
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