“Bed Bath & Beyond Sees Devastating Stock Plunge After Announcing Plan to Raise $1 Billion”
Bed Bath & Beyond (BBBY) shares are down as much as 45% on Tuesday morning and were halted on volatility a day after the embattled retailer announced it would raise up to $1.025 billion through a share offering.
BBBY was up 92% in the previous session ahead of Monday afternoon’s announcement as a recent rally in the near-bankrupt company gained momentum.
The retailer’s shares are heavily short, with short interest at about 53% of the free float, according to data compiled by S3 Partners.
Bed Bath & Beyond has been trying to save cash as it teeters on the brink of bankruptcy after racking up more than $1 billion in debt and losses by the end of 2022.
The company warned in a recent regulatory filing that it has been hit by a reminder from JPMorgan and does not have sufficient funds to pay off its loans.
Meme stocks have rallied overall over the past month as some of the trades reminiscent of the “meme craze” of 2021 have regained popularity so far this year.
GameStop (GME) is up 29% year-to-date and shares of AMC (AMC) are up 68% since the start of 2023. On Monday, AMC was briefly halted for volatility as the stock soared as much as 19%. Shares closed 11% higher on Monday.
Bed Bath & Beyond shares hit a 52-week low of $1.27 on Jan. 6, and shares have more than quadrupled since then.
Investors have taken a risk-on approach over the past month, with AI-related stocks seen alongside struggling tech names as the biggest winners alongside meme names from yesteryear.
Artificial intelligence maker C3.ai (AI) is up 6% on Monday, while smaller, lesser-known names like BigBear.ai (BBAI) are up 18% and speech AI company SoundHound (SOUN) is up 42% gained.
Ines is Senior Business Reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre
For the latest stock market news and in-depth analysis, including events moving stocks, click here
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance App for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, flipboard, LinkedInAnd youtube
Don’t miss interesting posts on Famousbio
