Bed Bath & Beyond Inc. (NASDAQ: BBBY) probably will declare bankruptcy soon. Its sales continue to fall over 20% year over year. It does not have enough money to pay suppliers for inventory. It recently closed 150 stores. Yet, the stock has more than doubled in the past week, then fell by over half and then recovered. (See which companies make the most profit per second.)
[in-text-ad]
Some of the investors who drove it higher have been punished in the past three days. Some have flourished. The stock traded at $5.57 on January 12th. It fell to $3.39 on the 16th and rose to $4.14 on Tuesday.
Bed Bath & Beyond is among the most recent speculation stocks. GameStop and AMC held similar positions not long ago. Day traders try to time their entrance and exit. Suckers are left on the other end of cleverly timed transactions. The internet is a ready means to spread information about public companies. Sometimes, this information is inaccurate, or even false.
The bedrock case that the fluctuation in shares should not happen is that a bankruptcy will wipe out common shareholders completely. Bed Bath & Beyond’s debt is so high that creditors will own all its assets, and this could happen within a matter of weeks.
The wild trades in Bed Bath & Beyond are a sign that the U.S. Securities and Exchange Commission has not stepped forward to investigate the causes. It should, given how much rumors have been the trigger. Some of these rumors are created to catch the eyes of people who do not understand what bankruptcy means. The wild price changes do not have a foundation.
In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.