Shares of Bed Bath & Beyond Inc. BYND,
sank 7.1% toward a one-month low in premarket trading Friday, putting them in danger of a fourth-straight loss in the wake of the struggling home goods retailer’s strategic update. The “meme” stock has tumbled 34.8% amid a three-day losing streak through Thursday. On Thursday, in addition to a downgrade to sell by a Wall Street equity analyst, S&P Global Ratings cut Bed Bath’s debt rating further into speculative grade, or “junk” territory, following the company’s issuance of a new first-in, last-out (FILO) loan and upsizing its asset-based lending (ABL) facility. the senior secured notes were lowered to CCC- from CCC. The rating is now nine notches below investment grade. “The downgrade reflects lower recovery prospects for BBBY’s senior unsecured lenders given the greater amount of priority debt in the company’s capital structure,” S&P said. Among other meme stocks, shares of AMC Entertainment Holdings Inc. AMC,
tackled on 1.3% and GameStop Corp. GME,
gained 1.4%, while futures ES00,
for the S&P 500 SPX,
were little changed.