- NASDAQ:BBBY fell by 21.30% during Wednesday’s trading session.
- Bed Bath and Beyond unveiled its turnaround plan and investors were not impressed.
- Meme stocks continued to trade lower in sympathy with Bed Bath and Beyond.
NASDAQ:BBBY finally unveiled its turnaround plan that meme stock traders and investors have been waiting for, but the company failed to impress. On Wednesday, shares of BBBY tumbled by 21.30% and closed the trading session at a price of $9.53. Stocks pulled back for the fourth consecutive day to close out August, and Wall Street recorded monthly losses for all three major averages. Further comments from the Fed suggested that interest rates will remain hiked until well into 2023. Overall, the Dow Jones lost a further 280 basis points, the S&P 500 dropped by 0.78%, and the NASDAQ posted a 0.56% loss for the session.
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Bed Bath and Beyond’s turnaround plan was supposed to reveal cost cutting measures and a potential sale of its Buybuy Baby division. Unfortunately for investors, the store instead announced a stock sale at an unspecified price, store closures, and laying off of staff. The company also hinted at further stock sales in the future, and confirmed that it has secured $375 million in loans. The moves only serve to magnify the financial instability of the company, and investors agreed, given that the stock fell by more than 21% after the announcement.
BBBY stock price
Meme stocks extended their own declines as AMC (NYSE:AMC), APE (NYSE:APE), and GameStop (NYSE:GME) all posted losses on Wednesday. AMC and APE fell by 1.51% and 5.77% respectively, lowering AMC’s true stock value to about $14.02. GameStop sank by a further 3.92% as the stock fell further below the $30.00 price level.
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