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Tag: Bed Bath & Beyond

  • SEC Closes Investigation Into GameStop Stock Fiasco

    The SEC has investigated so called “meme stocks,” such as GameStop’s epic run, ultimately deciding there was no wrongdoing.

    GameStop made headlines early this year when its stock skyrocketed. The frenzy was driven by investors on Reddit pumping the stock. AMC, Blackberry and Bed Bath & Beyond also saw their stocks driven up, thanks to individual stock traders. The phenomenon cost Wall Street who had shorted the stocks billions of dollars.

    The SEC investigation, however, has proven the buying frenzy was driven by individual investors, meaning there was nothing illegal about the trend…no matter how strange it may have been.

    “January’s events gave us an opportunity to consider how we can further our efforts to make the equity markets as fair, orderly, and efficient as possible,” said SEC Chair Gary Gensler. “Making markets work for everyday investors gets to the heart of the SEC’s mission. I would like to thank the staff for bringing their expertise to this important report, and for their ongoing work on to address the issues that January’s events raised.”

  • Short-Seller Losses Top $70 Billion In the War on Wall Street

    Short-Seller Losses Top $70 Billion In the War on Wall Street

    Short-sellers have lost a staggering $70 billion in the War on Wall Street between institutional investors and day traders on Reddit.

    Day traders on Reddit began driving up the price of stocks traditional Wall Street investors had recommended shorting, most notably GameStop, which saw its price go up some 1,000%. AMC, Bed Bath and Beyond, Blackberry and others also saw stock jumps as a result of the day traders.

    None of the companies in question saw their stock rise as a result of any fundamental change or improvement in their business. Instead, the phenomenon seemed to be a continuation of the Wall Street protests following the ‘08 crash, with everyman investors teaming up to stick it to Wall Street. Even Reddit co-founder Alexis Ohanian, Sr. highlighted how the whole situation was showcasing the power of community.

    That community effort is taking a tangible toll on Wall Street, with Reuters reporting that investors have lost some $70.87 billion as a result of their short positions on US companies. GameStop makes up a sizable portion of those loses, coming in at $1.03 billion, Bed Bath & Beyond, meanwhile, accounts for $600 million.

    It remains to be seen where this saga will end but, now that everyman traders have had a taste of the power they can wield, it’s hard to imagine stock trading will ever be the same.

  • Day Traders Continue to Pump Stocks, WH and Treasury Monitoring

    Day Traders Continue to Pump Stocks, WH and Treasury Monitoring

    Day traders continued to take on Wall Street investors, pumping stocks traditional investors have been shorting.

    GameStop made headlines when its stock surged after Citron Research’s Andrew Left urged investors to short it. Traders took to Reddit to urge others to buy, causing the stock to hit as high as $247 in after hours trading Tuesday, a far cry from the $18 it was at a couple of weeks ago.

    GameStop isn’t the only company to see its stock take off. AMC has risen some 310%, Blackberry 24% and Bed Bath & Beyond 46%, according to Business Insider. It appears that day traders are engaging in a new level of activism, targeting stocks that institutional investors are shorting. The end result is volatile trading that has caused traditional investors to suffer heavy losses.

    The situation is not going unnoticed, with WH Press Secretary Jen Psaki saying the White House and Treasury Department were monitoring the situation.

  • Bed, Bath, & Beyond Doubling Down On Digital

    Bed, Bath, & Beyond Doubling Down On Digital

    “We really doubled down on digital,” says Bed Bath & Beyond CEO Mark Tritton. “We weren’t easy and we weren’t convenient. Life’s tough at the moment and you really want to make it simple, easy, and frictionless for customers. The introduction of BOPIS (buy online, pick up in-store), curbside, and now same-day to really facilitate ease and frictionless shopping starting with digital or in-store, wherever the customer wants to go.”

    Mark Tritton, CEO of Bed Bath & Beyond, after releasing their earnings report discusses how the company is driving success by leveraging digital with frictionless brick and mortar stores:

    Doubling Down On Digital

    Our (6 million) new customers coming on board are about six years younger which is great news for us as we expand our customer profile. The key to that is our omni-always strategy. We talk about understanding our customer, how they shop today, and this was pre-COVID. Even more important, we know that 80% of our customers pre-shop online and either purchase there or go to store.

    We had a really broken paradigm. We had a fantastic digital business that was very large. We did about $1.8 billion last year. We already beat that by this time this year. We’re large, but we are growing. We really doubled down on that digital aspect. But we weren’t easy and we weren’t convenient. Life’s tough at the moment and you really want to make it simple, easy, and frictionless for our customers.

    Stores Are Key To Profitability

    So we looked at our website and our integration with our stores which is an ability to leverage our store asset and connect those strongly to an omni environment. It’s really worked out. The introduction of BOPIS (buy online, pick up in-store), curbside, and now same-day to really facilitate ease and frictionless shopping starting with digital or in-store, wherever the customer wants to go.

    We know that if we have a digital side that is BOPIS, curbside, or same-day, our margin is actually equivalent to a store. We are driving behaviour, driving engagement, and driving those three assets. That’s helping to leverage out our gross margin. As we rapidly expand our digital business the stores are a key to this profitability.

  • Former High Flying One Kings Lane Sold To Bed Bath & Beyond for “Not Material Amount”

    Former High Flying One Kings Lane Sold To Bed Bath & Beyond for “Not Material Amount”

    One Kings Lane, once holding a valuation of $900 million was purchased for an undisclosed amount by Bed Bath & Beyond.

    “We have followed One Kings Lane and loved its site since its inception, and we are thrilled for the opportunity to provide them with additional support and exposure to promote and grow their brand,” noted Steven H. Temares, Chief Executive Officer and Member of the Board of Directors of Bed Bath & Beyond Inc. “At the same time, One Kings Lane will serve as a cornerstone for Bed Bath & Beyond’s growing offerings in furniture and home décor, and together we will be able to do even more for and with our collective customers wherever, whenever and however they wish to interact with us, and to further our mission to be viewed as the expert for the home.”

    “We are excited to be part of the Bed Bath & Beyond family,” stated Dinesh Lathi, Chief Executive Officer of One Kings Lane. “This is a tremendous opportunity for our customers, as well as our employees and business partners, to benefit from additional support and resources and gain exposure to new customers. We look forward to being able to continue to differentiate our product offerings and refine our point of view to further delight our current and future customers.”

    According to Bed Bath & Beyond the price paid was not material to them and the company expects the transaction to be only slightly dilutive to its net earnings per diluted share for fiscal 2016. According to Dan Primack who covers deals for Fortune, “Bed Bath & Beyond has just $600 million in cash on hand, prior to One Kings Lane purchase.” So it couldn’t have had much of a valuation if its not material to their earnings.