This Meme Stock Just Proved the Short-Sellers Wrong

Just as buying a stock simply because hedge funds are betting against it by shorting its shares is a foolish investment strategy, the opposite is true, too. Shorting a stock without looking at the fundamentals of the business means you're simply gambling, not investing.

Bed Bath & Beyond (NASDAQ: BBBY) just dealt hedge funds and other short-sellers a decisive blow when it reported fiscal first-quarter results that were significantly better than expected. Because the home goods retailer is one of those meme stocks that actually still has a future, the foolish bet was to think its business is still tanking. Bed Bath & Beyond just showed those betting against its business just how wrong they were.

Image source: Getty Images.

Source Fool.com