Why Bed Bath & Beyond Stock Soared This Week
Bed Bath & Beyond (NASDAQ: BBBY) investors trounced the market this week. Shares jumped 22% through Thursday trading as the wider market rose 0.5%, according to data provided by S&P Global Market Intelligence. The surge looks less impressive when you zoom out, though. The struggling retailer's shares remain lower by nearly 60% so far in 2022.
The weekly rally wasn't powered by an improving outlook around sales and earnings, but instead appeared to be driven by speculative short-term bets on the meme stock.
Bed Bath & Beyond's financial prospects didn't improve this week. On the contrary, the company is facing increasing cash flow pressures that have reportedly led it to seek new loans on the private market, according to Bloomberg. Success on this score would help deliver flexibility as the company works to get sales trends back on track. But Bed Bath & Beyond isn't moving toward that rebound today.
Source Fool.com
