With the return of meme trading, one of the initial darlings of retail investors is rising again; at the time of writing, the stock is up 140% over the past month. Shares are still below their meme glory levels from a year ago, with the 52-week trading range for BBBY oscillating between $4.39 to $30.14. The stock could still be in short squeeze territory until the high level of short interest surrounding it gets sorted out. At the opening bell, the stock jumped almost 40% gaining $3.26 (39.89%) after seeing an initial 30% climb in the premarket. For the fundamentals, expectations are for the company to post a loss when it reports earnings sometime in September. As per Ihor Dusaniwsky of S3 Partners, BBBY’s short interest reached 52.80% on August 5, despite short sellers sustaining losses of roughly $90 million in August.
BBBY chart and analysis
Volume is considerably higher in the last couple of days, which is what is usually present during a strong move-up as per the technical analysis. The short-term trend is positive, while the long-term trend is still negative with 93% of all other stocks trading in the markets, performing better in the past year than BBBY. An important resistance area is located at $17.08, while the support line moved to $8.16. Additionally, analysts rate the shares a moderate sell, predicting that in the next 12 months, the stock could trade at $3.26, -74.53% lower than the current trading price of $12.80 at the time of publication. How long the meme investors can keep the momentum going is anyone’s guess at this moment; however, less experienced investors and traders should remain vigilant with the shares so as not to pile up losses in a hurry. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
