Bed Bath & Beyond Shares Surge 115% Since Q3 Announcement Despite Looming Bankruptcy

Bed Bath & Beyond (NASDAQ:BBBY) shares jumped more than 115% since the company’s reported Q3 results on Tuesday. This is despite the company reporting lower-than-anticipated financial results for Q3, with EPS coming in at ($3.65), significantly worse than the Street estimate of ($2.38). Quarterly revenue was down 33% year-over-year to $1.26 billion, compared to the Street estimate of $1.33 billion.

Retail investors caused the stock price to increase as they believe the company was a potential candidate for being bought out. The company stated it will cut additional workers as a means to lower expenses. This action follows the company's recent statement that it was considering filing for bankruptcy. The company announced on January 5th that the requirements for its exchange offer of unsecured notes were not fulfilled, and as a result, the company expressed doubts about its ability to remain a viable business due to current insufficient cash flow and lack of funds.