Wild Bed Bath & Beyond stock move exposes bigger investing problem

According to Anthony Chucumba, Bed Bath & Beyond’s vociferous voice, Bed Bath & Beyond’s recent stock price spikes – despite the retailer on the brink of bankruptcy – highlight the need to improve people’s financial literacy.

“This is a living example of the need for financial literacy education in the United States,” an analyst at Loop Capital said on Yahoo Finance Live (video above). “I mean, Bed Bath & Beyond will go bankrupt.”

Shares of Bed Bath & Beyond ended Friday’s session down 30% in another day of volatile trading on the meme favorite. Shares are up a mind-boggling 179% in a week.

The price frenzy came after Bed Bath & Beyond failed to declare “bankruptcy” to the world on its earnings report Tuesday morning. The lack of a bankruptcy filing seemed to embolden stock bulls, forcing bears — especially short sellers — to quickly cover their short positions, which only added to the stock’s upward momentum.

Then on Friday, the New York Times reported that retail-focused private equity firm Sycamore Partners was kicking tires by buying parts of a near-death home improvement retailer.

“In line with our practice, we do not comment on this type of speculation,” a spokesperson for Bed Bath & Beyond told Yahoo Finance via email.

Bed Bath and Beyond store.  (Getty images)

Bed Bath and Beyond store. (Getty images)

In any case, Chucumba said investors who delve into the core principles of Bed Bath & Beyond with their valuation tools will find that the numbers clearly don’t justify a 135% weekly gain in stocks.

“Frankly, the fact that stocks have risen since they reported earnings is nonsensical,” Chukumba added. “When they serve [for bankruptcy]shares will be worthless.

Some will learn a painful lesson if this happens.

Brian Sozzi is the editor-in-chief and Lead at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and beyond LinkedIn.

Click here to view the latest Yahoo Finance platform stock quotes.

Click here for the latest stock market news and in-depth analysis, including stock events.

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for An Apple or android

Follow Yahoo Finance at Twitter, facebook, Instagram, flipboard, LinkedInand YouTube

Content Source

News Press Ohio – Latest News:
Columbus Local News || Cleveland Local News || Ohio State News || National News || Money and Economy News || Entertainment News || Tech News || Environment News

Related Articles

Back to top button