#Bed bath and beyond stock full#

“In the event Bed Bath pursued a full or partial sale of BABY, it could position itself to pay off debt, put cash on the balance sheet and continue reducing its share count, thereby creating significant value for shareholders.” Unfortunately, the company’s total debt is rather substantial at $3.06 billion.Ĭohen also proposed the partial sale of its BABY division to pay off the debt. Presently, BBBY has a market cap of $2.06 billion, the business valued at nearly double that at around $4.1 billion. Image credit: Trading View.Īs usually happens with these stock spikes, at press time, it stabilized to just a 27% increase since Cohen’s letter on Sunday. (“BABY”).īriefly, BBBY stock surged from $16.09 to $33.27, a 105% increase that outperformed last November’s surge at 70%. It is this reinvention and expansion that worries Cohen, urging the company to focus on the core business model and separate BuyBuy Baby, Inc. This was an attempt to reinvent the old formula, following the deal with Kroger grocery chain to offer BuyBuy Baby products on and in physical stores, beginning in 2022. As a result, BBBY stock jumped by 70%, fortifying its position as a volatile meme stock. Later in the year, in November 2021, BBBY announced the launch of its digital marketplace where people could trade goods with third parties. In other words, retail traders bought the discounted shares in times of great fear, following Warren Buffet’s old maxim to “ be greedy only when others are fearful.” Viral fears are transitory, so a company like BBBY, which relies on travel and hosting, will eventually recover. Bed Bath and Beyond (BBBY) as a Part of the Stock Meme Trading PackageĪt the beginning of 2021, just like with GME and AMC, Bed Bath & Beyond (BBBY) came upon retail traders’ radar via the WallStreetBets subreddit.

Meaning, if other companies in the same industry are outperforming BBBY, the faultline doesn’t lie in the C19 fallout as an excuse. the CEO’s tenure, which would be Mark Tritton.Ĭohen pointed out that during two-and-a-half years under Tritton’s leadership, BBBY underperformed S&P Retail Select Industry Index by nearly 60%, with a 29% drop in annual sales from the pre-C19 period. He even included a comparison table with the S&P 500 index, showcasing Bed Bath’s losses vs. (“BABY”) and a full sale of the Company.”Ĭohen further admonished the BBBY board for overpaying its executives despite being unsuccessful in consolidating losses. “We believe Bed Bath needs to narrow its focus to fortify operations and maintain the right inventory mix to meet demand, while simultaneously exploring strategic alternatives that include separating buybuy Baby, Inc. The question is, what did the present chairman of the video gaming retailer GameStop (GME) do to make BBBY open at $30, the highest price in the last 6 months? In Cohen’s letter to BBBY’s board on March 6th, where he revealed his 9.8% ownership of the company, he stated the following: GME Chairman Plans to Change Bed, Bath and Beyond for Better with 9.8% Stake in Company The Securities and Exchange Commission (SEC) filing shows Cohen got into BBBY on February 24th with 9,450,100 voting power shares, with his RC Ventures LLC as the investment vehicle. Retail’s power to surge stocks made a showing today again as Bed, Bath and Beyond (BBBY) reacted to Ryan Cohen’s declaration that he owns a 9.8% stake in the company on Sunday. Please consult our website policy prior to making financial decisions. Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice.

Bed bath and beyond stock