Bed, Bath & Beyond, Amc Entertainment Rebound In Meme-Stock Rally

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Bed, Bath & Beyond’s stock lost nearly half its value last week after the company warned it may have to seek relief through bankruptcy. The company has struggled for years with shrinking sales as it competes against Amazon and other rivals.

Shares of some popular meme stocks rallied on Wall Street on Monday in what proved to be an all-around mixed trading session for the US stock market. Shares of Bed Bath & Beyond, once a meme-stock darling during the mania, rebounded sharply in high-volume trading amid speculations that the company might be a potential acquisition target. Shares of the company were up 23.66 percent at $1.62 on Nasdaq, on track for their biggest one-day percentage surge since August 8 last year.

Also, shares of AMC Entertainment Holdings advanced 2.08 percent to $3.93 on Nasdaq. The stock’s rise snapped a two-day losing streak. AMC Entertainment Holdings Inc. closed $17.16 below its 52-week high ($21.09), which the company achieved on March 29 last year.

Bed, Bath & Beyond’s stock lost nearly half its value last week after the company warned it might have to seek relief through bankruptcy. The company has struggled for years with shrinking sales as it competes against Amazon and other rivals.

As per a Reuters report, Bed Bath & Beyond said it expected a net loss of $385.8 million for its quarter ending in November, including $100 million of impairment charges.

Reddit, one of the online retail stock forums, have been buzzing about a possible merger and acquisition deal, fueling a 2020 phenomenon of buying frenzy reminiscent of the “meme stock” in which shares of troubled companies such as GameStop Corp and AMC Entertainment Holdings soared .

A meme stock refers to the shares of a company that have gained viral popularity due to online and social media platforms.

-With input from agencies

First Published: Jan 10, 2023 10:42 AM IS

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