Bed Bath & Beyond and Avis Are New Meme Stocks


Shares of car rental company Avis Budget Group more than doubled on Tuesday in a sudden and unexpected rise that recalls previous trading sprees. Game Pause, AMC Entertainment and other so-called meme stocks. Retailer Bed Bath & Beyond, which had attracted interest in its previous breast-stock segments, has also risen sharply in late trading.

The moves, positive corporate announcements, increased interest from retail investors and short sellers jam. Avis is published better-than-expected earnings Tuesday, and executives hinted at plans to buy more electric cars. Bed Bath & Beyond announces partnership with grocery chain kroger and updates about it share buyback program.

More appropriately, perhaps both companies are popular targets of short sellers, which makes them attractive to “meme-stock” traders – they get their name for sharing ideas, teaming up and promoting each other on social media, embracing the enigmatic. The humorous language of viral internet trends. In a short squeeze, a rising price can force investors betting against a stock to buy the shares to close their positions, multiplying the gains.

Most amateur investors this year taped together raising the prices of a handful of companies, gaining a self-fulfilling momentum and transforming the wealth of firms. Caught unprepared for hyperbolic trading patterns, Congress held hearings and regulators published report About this powerful new force in the markets, if anything, about what to do.

Shares in Avis fell nearly 12 percent Wednesday, keeping most of the previous day’s gain, while Bed Bath & Beyond was up more than 50 percent.



Source link

Leave a Reply

Your email address will not be published.