Bed Bath’s stocks go beyond

In the latest edition of meme investing 101, online investors have flocked to Bed Bath & Beyond.

Back once again

You may remember the Gamestop gold rush of last year. Well, the catalyst of it all – the so-called father of meme investing, Ryan Cohen – is back, and this time he’s looking to Bed Bath & Beyond. Not an obvious choice, maybe, but there are also some clear parallels.

Bed Bath & Beyond isn’t quite what it used to be. Sales are down from pre-pandemic levels and the stock has been trudging along at historic lows for a while. But merely the revelation of Cohen’s 9.8% percent stake has caused share prices to go haywire.

Treading new water

Cohen has developed a reputation as something of a benchmark for online investors. Revealing his stake in Gamestop triggered a gold rush of baffling scale. The seemingly failing retailer went from peddling cheap stocks to enjoying a remarkable recovery – and back again.

Now it’s Bed Bath & Beyond’s turn to reap the rewards of what has been dubbed meme investing – a type of investing triggered by social media hype. The flash mob of investing don’t stay for long though, and a failing business will still be a failing business either side of a short-term surge in stock prices. Who knew memes could be so cruel?

But that won’t matter to holders of BB&B. Temporary respite? Long term prospects? Where Cohen goes, the money flows – so follow the meme investors and enjoy the ride.