Bed Bath & Beyond BBBY Stock Analysis
Bed Bath & Beyond $BBBY is a stock I've first looked at 2 years ago when I invested in GameStop $GME . Many people said that it was in a similar situation but I didn't like the company and I didn't invest in it. BBBY stock is once again being suggested to me.
Bed Bath & Beyond is a physical retailer and just like GameStop, they failed to capitalize on digital growth and compete with companies such as Walmart or Amazon $AMZN . And just like GameStop, they are now attempting to become an omnichannel retailer. They are closing stores, selling part of their business, and improved their website.
Why did I invest in GameStop and not in BBBY? It's mainly because it didn't have a catalyst. GameStop had the new console cycle. It is for the same reason that I didn't invest in AMC $AMC . I've always looked at GameStop buying back shares and the short squeeze as bonuses. The main catalysts was the new console cycle and the great balance sheet GameStop had. BBBY didn't have such a great balance sheet.
What if we look at Bed Bath and Beyond without a catalyst but just a cigar butt stock? At current price, Bed Bath & Beyond is overvalued.
BBBY recently announced that they were going to accelerate their share buyback. With 26% of shares outstanding short and 58% of float, Can this lead to a short squeeze? It is not as good as GameStop was but a short squeeze is certainly possible. However, investing in a company because of a short squeeze is not investing, but speculating. With GameStop, I was certain that the short squeeze was going to happen. It was inevitable and would have happened even without WSB.