Bed Bath & Beyond Coverage Pulled at Bank of America Amid Meme Craze

Bank of America pulled its Bed Bath & Beyond coverage after the stock swung wildly in sessions this week.
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Shares of Bed Bath & Beyond  (BBBY) - Get Report fell on Friday after analysts at Bank of America pulled their rating on the home-goods retailer.

The stock of the Union, N.J., chain has swung wildly this week amid the meme-stock push from retail investors.

Bed Bath & Beyond shares jumped more than 60% Wednesday on no news. The stock then dropped 28% on Thursday. At last check the shares were off 1.9% at $31.28. They've traded on Friday down as much as 4.5% and up as much as 3.4%. 

Read More: Avoiding Meme Stock FOMO: Experts Tips, Advice

The stock's rapid appreciation is being driven by "another surge in interest and trading led by retail investors," Bank of America analyst Curtis Nagle said.

He said that the stock moved similarly to other meme stocks like GameStop  (GME) - Get Report, AMC Entertainment  (AMC) - Get Report, and BlackBerry  (BB) - Get Report. These are favorites of small investors who participate on the subreddit WallStreetBets.

The firm says that nonfundamental factors, like retail investor interest, trading volumes and short-interest levels, have dominated the stock's price action. 

But Bank of America still sees Bed Bath & Beyond as a long-term turnaround story and forecasts the company to achieve between $850 million and $1 billion of earnings before interest, taxes, depreciation and amortization by 2023. 

On Wednesday, BlackBerry shares jumped to a nine-year high after being lauded on the online retail investor community known as Stocktwits.

Real Money's Chris Versace and Action Alerts PLUS senior portfolio analyst Jeff Marks joined TheStreet Live Wednesday to discuss BlackBerry.

Read More: Bed Bath & Beyond Shares Slump After Holiday Quarter Sales Slide