Beds Buses & Beyond shares surged 39% on Monday. Manufacturers, which could put pressure on those making bearish bets.
"Short on BBBY right now, I'm sure he's getting a squeeze," said Ortex analyst Evan Niu, who said his 45% of the company's free float is in I added that I had a short.
A spike in the price of a shorted stock may force bearish investors to buy back the stock at a higher price to limit losses. A surge in demand from short sellers willing to let go of their bets pushes the rising stock price even higher, leading to a short squeeze.
The stock ended at $11.33, its highest in almost three months, and is about to continue its ninth consecutive rise. If this trend continues, Bed Bath &Beyond's market value will double to more than $900 million since it began its rally on July 27.
As of noon Monday, Bed Bath& Beyond was the most searched name on Reddit's WallStreetBets discussion board. According to Quiver Quantitative, CNBC reported. Bed Bus &Beyond was the most bought stock among clients of retail brokerage firm Fidelity, with every sell order he had three or more buy orders. With 54.5 million shares traded by 10:18 am ET, it was the most actively traded stock on US exchanges.
"This kind of very big move is an outlier, but it happens again and again," said 50 Park Investments chief executive. Director Adam Sarhan said.
"But most of the time, these exaggerated moves are short-lived and stock prices tend to fall." As part of this, it replaced CEO Mark Tritton andreported a 25% decline in net sales in the first quarter.
GameStop and AMC Entertainment are at the center of thememe frenzyin early 2021, jumping 8.8% and 13.8% respectively for at least six consecutive sessions.
