Bed Bath Share Price Forecast: Next 2 Weeks Will be Crucial

The Bed Bath share price has staged a strong comeback as investors rush back to popular meme stocks. BBBY stock rose to $27.25, about 120% above its year-to-date low. The shares remain about 40% below their highest point in 2021, and analysts believe the stock will continue its bullish trend in the coming months. 

Why BBBY stock is rising

There are three main reasons why the Bed Bath share price is rising. First, this performance is in sync with other meme stocks like AMC, GameStop, and Blackberry. These shares have risen by double-digits from their lowest levels this year as interest among day traders rose. A quick look at the mentions of these stocks on Reddit, Twitter, and StockTwits.

Second, the BBBY share price has risen sharply because of the ongoing interest in the company. Recently, the management announced that it would be open to being bought. This happened after Ryan Cohen, the founder of Chewy, expressed interest in buying the company. His investment firm already owns about 9.9% of the firm. 

Last week, the company said it could be seeking a buyer for its BuyBuy Baby business. Analysts expect the business to be worth up to $1.5 billion, which is notable since the total Bed Bath and Beyond has a market value of over $2.1 billion.

An acquisition would be a good thing for Bed Bath, a company that is struggling. For one, it needs to spend billions of dollars remodelling its stores to make them attractive. Also, it is facing strong competition from “cool” companies like Wayfair and even Amazon. But, most importantly, the rising inflation could hurt demand for its products, which explains why it recorded a $390 million loss in 2021. Also, it has a mountain of debt of about $3 billion.

The next two weeks will be important for Bed Bath stock price, considering that it will publish its quarterly results on April 13th. Analysts expect that the company’s revenue rose to $2 billion in Q1 while its profit per share rose to $0.06. Historically, companies tend to make major announcements ahead of or during earnings.

Bed Bath share price forecast

The BBBY share price has gotten its swag back in the past few weeks. This rebound happened after the shares settled at the important support level of $12.95. The current price is slightly below the YTD high of $30. It is also along with the 50% Fibonacci retracement level. Therefore, while volatility is expected, the outlook is bullish, and the stock could rise to the 61.8% retracement level at about $32. A drop below $23 will invalidate this view.