Is Bed Bath & Beyond Stock a Buy?
Back in late June, Bed Bath & Beyond (NASDAQ: BBBY) posted a disastrous first-quarter report and fired its CEO, Mark Tritton. Its stock subsequently sank below $5 for the first time since the COVID crash in April 2020. But over the past month, its stock more than doubled to about $13. That rally wasn't driven by any meaningful improvements to its business. Instead, it was likely sparked by a short squeeze and exuberant discussions about the stock on Reddit's WallStreetBets (WSB) forum.
At the end of July, 36% of Bed Bath & Beyond's outstanding shares were still being shorted. The stock trades at just 0.2 times this year's sales after its month-long rally, which suggests that any positive news might drive it even higher. So should investors chase this wild rally?
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Source Fool.com
