Retail traders on global online retail trading platform, Capital.com, continue to rally behind popular ‘meme’ stock Bed Bath & Beyond Inc (NASDAQ:BBBY). Single-day CFD trading volumes in the beleaguered home-goods retailer climbed by more than 260% today. All BBBY trades on Capital.com are currently 100% net long.
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Bed Bath & Beyond's Stock Rallies
This bullish sentiment follows the stock’s rally of more than 17% on Monday, after closing at a record low of 24 cents on Friday. Last week, the company disclosed the sale of more than 100 million shares, adding it could sell up to $300 million worth of stock, to raise further funds or face bankruptcy.
According to Daniela Hathorn, Senior Market Analyst at Capital.com, the rally is being fuelled by social media attention and is likely to be short lived.
“With bankruptcy looming, the fundamentals of the company are not attractive to new investors, but renewed social media attention is causing a false sense of demand, which saw the stock up 17% on Monday.
As is usual with meme stocks, the bullish run may last a few days as it overheats, but it is unlikely to sustain any move higher and when momentum runs out of steam, the stock will come crashing back down once again.”
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