Why Is Bed Bath & Beyond Stock Up Today?

Bed Bath & Beyond saw its stock price surge following very positive announcements, but should investors look to buy into it right now?

Nov. 3, 2021

Popular American domestic merchandise chain Bed Bath & Beyond (NASDAQ: BBBY) has seen stock prices soar following a number of promising press releases detailing the company’s future plans.

Its stock rose over 50% in pre-market trading today following the news that it is set to launch a digital marketplace for the sale of third-party products, and has established an e-commerce collaboration with supermarket giant Kroger.

Further announcements of the company’s buyback program being ahead of schedule and positive changes to the executive leadership team were welcomed by investors and only added to the bull market.

Why does this matter to investors?

These announcements triggered a 9.6% jump in the company’s stock price yesterday, and heavy volumes of after-market trading has seen the stock rise a further 53% at the time of writing. The company has done a fantastic job of trying to streamline the business and explore new avenues of revenue following some less than stellar earnings reports throughout the COVID-19 pandemic. 

The expansion into the digital world, especially with the company offering products from third-party providers, should be seen as an enormous opportunity for growth. As CEO Mark Tritton puts it, “we are developing new avenues of long-term profitable growth to allow us to organically build on our existing authority in the Home and Baby categories.”

This slew of positive announcements should have investors feeling extremely positive about the future prospects of the company. It’s clear that Bed Bath & Beyond has a vision for the future and it’s executing with precision and assurance.

So should I buy Bed Bath & Beyond stock?

Despite strong reports out of the company this week, investors should be wary of the current short-squeeze taking place on the stock. Bed Bath & Beyond is a former darling of meme-stock investors and can be prone to massive volatility; particularly following the impressive price increases seen yesterday and today. Expect the stock to display this volatility in full this week. The company’s announcements this week should have prospective investors interested in the long-term prospects of the stock, but caution is advised for the foreseeable future at least.

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