BBBY Stock: Don’t Get Caught Up in the Hype

BBBY Stock: Don’t Get Caught Up in the Hype

Published August 18, 2022
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Some stocks are only good for short-term trading, while others are meant to be buy-and-hold investments. There’s a lot of hype surrounding Bed Bath & Beyond (BBBY) right now, but it’s all about the stock and not the company itself. Therefore, it’s wise to maintain a safe distance and avoid getting caught up in the hype. I am bearish on BBBY stock.

Bed Bath & Beyond operates a chain of stores offering home products, mainly for bedrooms, bathrooms, and kitchens. The onset of COVID-19 made it difficult for retail store chains like Bed Bath & Beyond to deliver shareholder value. A major shift toward e-commerce meant that people shopped primarily on Amazon (AMZN) instead of bricks-and-mortar stores.

Bed Bath & Beyond does have an online presence, but it simply can’t rival Amazon’s. Granted, there’s been a recovery from the COVID-19 pandemic, but in 2022, shoppers are dealing with inflation and concerns about a possible recession. Consequently, Bed Bath & Beyond has to prove to the shareholders that it can deliver results during these challenging times.

These are sensible considerations for prospective long-term traders. Yet, there’s evidently a sizable group of traders who prioritize short squeezes over company fundamentals. If they’re pushing BBBY stock up to unsustainable levels, the retracement could be swift and you don’t want to be in the trade when that happens.