Another Meme Stock Mania? American Retailer Bed Bath & Beyond's Shares Shoot Up 97% In 5 Days!

Remember the short squeeze that happened with GameStop shares in January 2021?

From hovering mostly around the $2-$4 mark in the past decade or so, Gamestop shares soared on New York Stock Exchange (NYSE) to $8.88 on January 15th 2021, $16.25 on 22nd January 2021, and then boomed to $81.25 on 29th January 2021. Then came the massive fall after the sudden surge. The stock fell to $15.94 by 5th February 2021. And now, a similar ¡®short squeeze¡¯ seems to be in the making for another stock.

The share price of Bed Bath & Beyond (BBBY), which is an American chain of domestic merchandise retail stores, has been surging massively over the past week. On NASDAQ, the shares of BBBY have soared around 97% in the past five days.

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As per a Bloomberg report, retail traders who lurk in forums like Reddit¡¯s WallStreetBets are back to betting against Wall Street pros and the Federal Reserve as rallies for meme stocks like Bed Bath & Beyond Inc. and AMC Entertainment Holdings Inc (largest movie theatre chain in the world) are showing shades of last year¡¯s mania.

Bed Bath & Beyond nearly tripled at one point during its nine-day winning streak while the AMC capped a 65% rally of its own as speculative pockets of the stock market surge, the report mentioned.

This comes amidst meme stock traders seeming to bet on these stocks despite any prominent catalysts for this sudden move.

As per CNBC, Bed Bath & Beyond shares posted their biggest one-day gain in more than a year.

As of midday Monday, Bed Bath & Beyond was reportedly the most searched name on Reddit¡¯s WallStreetBets discussion board, according to Quiver Quantitative. Users under a pinned thread titled ¡°GME, BBBY and AMC Memestock Megathread for Monday August 8th, 2022¡± appeared to be buying up shares of the retail stock.

Bed Bath & Beyond¡¯s taking of the meme stock baton on Monday witnessed a record 120.5 million shares changing hands, with the stock being the second-most bought asset on Fidelity¡¯s platform.

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Now it remains to be seen how long this rally of Bed Bath & Beyond shares goes on, and whether it turns into another ¡®short squeeze¡¯ example similar to last year¡¯s story of GameStop, or not!