Bed Bath & Beyond Inc.'s 510% three-week surge stands in the face of Wall Street banks sounding the alarm on the stock's lofty valuations.
More than 160 million shares changed hands, making it the most actively traded stock, as the stock soared 75% to $28.06 on Tuesday. The most active derivatives tied to the stock are those that bet on the stock to trade above $45 by the end of the week and those that bet on it to trade at $80 by January.
The surge has come despite at least three Wall Street banks lowering the home-goods company's rating. Susan Anderson at B Riley Securities cut her rating to sell from neutral and called the retailer's valuation "un realistic." The company is burning cash and the fundamental risk/reward looks unattractive, warned the analyst before the stock popped.
The surge in buying from the retail trading crowd has pushed over $100 million into the stock since July 26. There was a record $46 million inflow on Monday when the stock spiked to the highest since April.
A burst in activity was seen by other meme stocks. The video-game retailer spiked 12% to cause a trading halt as the movie-theater operator erased losses.
Bed Bath & Beyond was the most purchased asset on Fidelity's platform, with buy orders far outnumbering those to sell at 10:51 a.m. Its ticker was the most talked about on both StockTwits and WallStreet Bets.
After the surge, the stock is still down more than 50% from a January peak. The market value of AMC and GameStop has been wiped out.
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