Chain of retail stores for home goods Bed Bath & Beyond issued several positive press releases at once. The company announced the launch of the marketplace, cooperation with the Kroger supermarket chain and aggressive buyback. Looks like, users of the Reddit forum liked the retailer's initiatives.
What's new
Sell Bed Bath & Beyond have not grown for a long time. According to Macrotrends, The company's annual revenue over the past three years has fallen by 25%: from 12.3 to 9.2 billion dollars. Pandemic is partly to blame, although sales began to fall even before the quarantine.
Exactly two years ago, the head of Bed Bath & Beyond appointed Mark Tritton, who previously worked at Target. Tritton began to optimize the business: close inefficient stores and produce more original products. Here's what the company told investors on Tuesday, 2 november.
Marketplace. Bed Bath & Beyond will launch a digital marketplace. The store will sell products of the company and third-party brands. The marketplace is another example of, how we are transforming our business, Tritton said..
Kroger. Bed Bath & Beyond and Kroger - the largest grocery chain in the US - announced a partnership. From the beginning of next year, the company's products will be sold on the Kroger website., as well as in some physical stores as part of a pilot project.
Baibek. Formerly Bed Bath & Beyond announces $1 billion share buyback. In 2020 and the first half of 2021, the company has already spent 600 million. The remaining 400 million were planned to be distributed until the end of 2023. And now Bed Bath & Beyond stated, which will accelerate the buyback and end the program in fiscal 2021, a couple of years ahead of time.
Reddit in action
During the main session against the backdrop of positive announcements of the Bed Bath promotion & Beyond added 10%. The main growth happened in the postmarket. In total, the company's shares rose by 90%. One of the reasons is the short squeeze.
About 27% the retailer's shares were sold short. According to FactSet, according to this indicator Bed Bath & Beyond ranked third among the 1,500 shares of the largest US companies..
According to the tracking service Swaggy Stocks, the company has become one of the most mentioned on Reddit. Probably, forum users began to disperse shares of Bed Bath & Beyond is a private hedge fund, who opposed, close your positions.
January Bed Bath & Beyond has become one of Reddit's favorites with GameStop and AMC Entertainment. Forum participants began to massively buy shares of companies with business problems. This is how they wanted to punish large funds, who bet on the fall of their favorite companies.
Another "meme" action on Tuesday was Avis Budget - one of the world's largest car rental companies.. Avis Budget also made several positive statements at once.: reported better than expected, announced a billion dollar buyback and the purchase of electric vehicles in its fleet.
In a day, Avis Budget shares added 108%. At some point, the paper grew by more than 200%. A short squeeze could also happen in the company's shares.. As FactSet states, about 21% securities were sold short.
