Retail traders bought up shares of meme stocks in a coordinated effort on Monday, causing some experts to warn that meme stock mania is back.
The share prices of popular meme trades have increased in the past.
Retail investors, including those from the WallStreetBets discussion forum, piled into the stock of Bed Bath & Beyond.
Bed Bath & Beyond's shares have risen for nine sessions in a row, gaining more than 1200% in that time.
Bed Bath & Beyond was the most searched name on the WallStreetBets forum on Monday, per investing research platformQuiver Quantitative, while most users were posting in a discussion titled "GME, BBBY and AMC memestock megathread for Monday August 8th, 2022."
On Monday, shares of other meme trades like AMC and GameStop rose in tandem with one another, each rising 8%.
The meme stock mania of last year, when all three stocks surged higher thanks to an army of retail investors who drove up the share prices and squeezed many short sellers, is being compared by experts.
The recent price action is similar to that of Hong Kong-based fintech firm AMTD Digital, which saw its shares rise over 125% in a single day before plunging nearly 40% the next day.
"Nonsense behavior is creeping back into markets as'meme' stocks see a jump in popularity." It does seem like there are signs of some irrational exuberance going on in markets, he says.
Bed Bath & Beyond's stock has been rising even though there have been no good news recently. Interim CEO Sue Gove took over from Mark Tritton in June as the company struggled with bad financial results. The former CEO tried to reverse declining sales by launching new private-label brands, but it didn't work out and he was replaced by another CEO.
The new CEO of Bed Bath and Beyond bought 50,000 shares.
The expert warns said to stay away from the scam.
The new perfect meme stock lost $100 billion in value in one day.
The market selloff didn't stop meme stocks from surging.
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