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Bed Bath & Beyond (NASDAQ:BBBY) surged again Tuesday, up over 75% at the beginning of the session as the meme stock craze that emerged during the pandemic shows itself once more.
The stock has gained 510% in the last three weeks as meme stock traders flood to buy shares of the struggling retailer despite Wall Street banks warning against lofty stock valuations.
BBBY shares hit a high of $28.60 during today’s session, triggering a trading halt with over 160 million shares changing hands, making it the most actively traded stock, according to Bloomberg.
Several Wall Street banks have downgraded the stock in recent weeks. A B. Riley analyst downgraded Bed Bath & Beyond shares from Neutral to Sell, stating its valuation is “unrealistic.”
Last week, a Baird analyst downgraded the stock to Underperform, stating the rally was driven by “non-fundamentally focused market participants.”
However, those downgrades haven’t stopped the surge, with its share price hitting levels last seen in March on Tuesday. On Monday, BBBY gained 23.55%.
During the pandemic, meme stocks such as GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) surged. Those stocks have also gained in recent weeks, with GME up 10.9% Tuesday and AMC up just 2%.
According to Apewisdom.io, Bed Bath and Beyond is the top trending stock on Reddit in the last 24 hours.
