Why Did Bed Bath & Beyond’s Stock Skyrocket 42% Since Last Week?

Bed Bath & Beyond (NASDAQ: BBBY), is up nearly 42% in the last five trading days (one week) and is currently around $ 22. In comparison, the broader S&P500 index gained only marginally over the same period. The household products retailer has just announced a change to its business model that includes an important collaboration with Kroger, a national supermarket chain. As part of the collaboration, BBBY will offer Kroger customers an extensive selection of its most popular household and baby products through Kroger.com and eventually in a number of its grocery stores. Additionally, the retailer will launch a small in-store pilot project sometime next year. All of these steps appear to be in line with Bed Bath & Beyond’s strategy of revitalizing the company’s troubled business. While investor excitement added to the retailer’s stock price surge following the news of the merger, short sellers also caused a short squeeze shortly thereafter, pushing BBBY’s stock price even higher.

Now is BBBY stock ready to continue growing? Based on our machine learning analysis of the share price performance over the past ten years, there is a very small chance that BBBY shares will rise in the next month (twenty-one trading days). See our analysis on BBBY share chance of rise for more details. And if you’ve been considering SPG stock as an investment option for an extended period of time, you can explore too BBBY’s revenue against his story.

[1] Returns of 42% or more during Five day period in 10 times out of 2516; The stock rose 1 of the 10 times over the next five days

[2] Returns of 50% or more during Ten day period in 14 of 2516; The stock rose 4 of those 14 times over the next ten days

[3] Returns of 46% or more during twenty-one days notice in 48 times out of 2516; The stock rose 17 of those 48 times over the next 21 days

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