Loss-making US company's share price zooms over 400% in one month - factors behind rally DECODED

Bed Bath & Beyond share price has gained over 4 times or 400 per cent this month, according to a Zee Business report. Bed Bath & Beyond, founded in 1971, is a loss-making American company and its shares are listed on the NASDAQ (BBBY).

The counter has jumped 6 times in a month, the report said. The company's share price has gained by more than $25 apiece in the last one month. The stock has surged nearly 60 per cent almost every week in the last one month.

1 महीने में 4 गुना हुआ शेयर का भाव

महीने के उच्चतम स्तर पर लगभग 6 गुना

कौन सा है ये शेयर ?

जानिए पूरी डिटेल्स अरमान नाहर से @ArmanNahar | #ShareMarket | #StockMarket pic.twitter.com/8b8jVe6i9G

— Zee Business (@ZeeBusiness) August 17, 2022

Bed Bath & Beyond stock's 52-week range is $30.14 - $4.38.

The stock became a major attraction for retail investors after the company in a filing revealed activist investor Ryan Cohen's latest bet. Explaining the actual reason behind the hype, Zee Business analyst Arman Nahar said that Cohen's investment vehicle RC Ventures, which is the second largest investor in the company and has added three independent directors to its board, bought call options expiring in January 2023 on 1.67 million shares with a strike price ranging from $60 to $80. 

Trading in Bed Bath & Beyond, which has around 51 per cent of its public free float in a short position, triggered a short squeeze signal.

An option gives the buyer the right to buy or sell a security at a given price on a given date. Buying a call option is essentially betting the underlying asset will rise in price.

Bed Bath & Beyond is a chain of domestic merchandise retail stores. It was founded in 1971. The company operates 953 stores, including 771 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada.