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Bed Bath & Beyond stock rises as GameStop, AMC dip

Yahoo Finance Live anchors discuss how meme stocks are performing.

Video Transcript


BRAD SMITH: Also, let's check in on some of the meme moves that are taking place here on this Monday. A Monday meme check in. And the Bed Bath & Beyond shares, you're seeing them up by about 6.4% here. GameStop up by about 4/10 of a percent. And AMC, that's slower by about 3/4 of a percent.

And particularly here, as we've been taking a look at those, it comes with the context that there's been even more of the takes that have continued to emerge. We got one from Morgan Stanley. And they're looking for more details on the turnaround strategy from Bed Bath & and Beyond, said all of us.

BRIAN SOZZI: Look, Bed Bath & Beyond cannot come out here later this week and put another turd on the board. I mean, that is just-- it's just the reality of the situation. And even if they come out here and say, you know what?

We came out here, we just inked another $400 million loan deal. That almost doesn't mean squat. It just allows them to get through the holiday season, maybe get some inventory in their stores.

What about the first half of next year? If this company has a bad holiday season-- and their performance during the holiday season has not been great the past few years, even going back to when Mark Tritton wasn't the CEO of Bed Bath & Beyond-- there could be major problems in that first quarter of next year if this holiday season is a big fat dud.

BRAD SMITH: Prior to him, I believe that was Jack [? Tamara's, ?] right? And so-- or, yeah. So as we were kind of thinking about the history of either deep discounting or, you know, a lot of the coupon codes that all of us received, the context here also comes with that "Wall Street Journal" report that came out last week talking about the loan that they had finalized in the range of about $400 million.

And so even if that does get finalized, how they put that to work? How that ultimately kind of prompts this turnaround strategy or at least fuels the turnaround strategy?

But as we've talked about before-- and I think we were talking about this with regard to startups and some of the companies that take on new funding. I think it was when WeWork got their funding, that was a head-scratcher for everybody. Saying that this is just the oxygen-- well, the water at the end of the day, too for the livelihood of a company is also just the revenue and the sales. And that is key for Bed Bath & Beyond to see that start to drop.

BRIAN SOZZI: Yeah, and a quick teachable moment here. If you are investing in retail or you're looking at the retail sector, any time you hear vendors potentially-- or pulling back their support for retailer, that usually means the retailer has one foot in the grave.

Now, also, you mentioned meme stocks more broadly, they got hit on that [? row. ?] Let's all call up AMC. You know, it's a fun tweet from new friend of the show, AMC's CEO Adam Aron. Looks like he's off to Ireland. He's gonna hang out there for Ireland, first talking about his first job working at Pan Am.

He is excited to go to amusement-- a museum in Ireland tomorrow with a full-sized replica mockup of the Pan Am Boeing 314 flying boat plane. So there's Adam Aron maybe taking a little Labor Day breather, as he gets back at it amidst that fourth quarter big pull or big increase in big name, box office videos.

BRAD SMITH: Everybody deserves a little bit of a vacation, right?

BRIAN SOZZI: Yeah, sure.

BRAD SMITH: At some point or the other.