Analysts at Bank of America have thrown in the towel on Bed Bath and Beyond stock. The Bank admits they have no idea what comes next for BBBY.
BBBY finished the day almost unchanged at $31.71, down $0.19 (-0.60%).
Bank of America has withdrawn their coverage of Bed Bath, moving to ‘No Rating,’ telling clients that the stock is ‘no longer trading on fundamentals.’
‘Investors should no longer really upon our previous investment opinion or price objective,’ the bank added.
The report detailed the factors behind Bed bath’s latest volatility. These included a ‘large sequential increase in mentions on retail investor forums,’ huge trading volumes, in addition to increasing short interest in the stock.
They drew comparisons with other ‘meme stocks’ such as Gamestop (NYSE: GME) and AMC Entertainment (NYSE: AMC). Both of which have experienced short-squeezes reminiscent of January this year.
Similarly, I have no idea how the price will perform in the week ahead. Even though the price has given back some of its 84%, 5 day gains, it could still go higher.
Until the outstanding shorts have reduced, the threat of squeezing back above last week’s $44.51 high remains. In saying that, the price could just as easily continue lower.
There are just too many factors at play to predict how this story ends.
In conclusion, I too will be moving to a ‘No Rating’ for the stock.
Follow Elliott on Twitter.
