- NASDAQ:BBBY managed to add 0.16% on Tuesday to settle at $6.38.
- AMC leads meme stocks lower after it discloses a potential stock sale.
- Bed Bath & Beyond has not provided many updates following its new strategic plan.
Update: One of the most-mentioned stocks in the Reddit subforum Wallstreetbets, NASDAQs BBBY, continued to stabilize at last week's lows. The stock has morphed into a potentially bullish formation on the hourly charts as the price meets support near the close of around $6.38c. The pattern is a harmonic W-formation and following the reversion to the neckline, the price could be attractive to the bulls for Wednesday's open. However, the bulls will need to get above $6.84 as being the September 7th lows. If the bulls do commit to the correction, a 50% retracement comes in near $7.30. On the other hand, $5.80 is beckoning the bears on the daily chart as the next structure in line for a retest as support.
recovered some ground on Tuesday, despite the sour tone of Wall Street. The share closed 0.16% higher at $6.38, as the Nasdaq Composite seesawed around its opening throughout the session, ending it marginally higher, as the index added 0.25%. The Dow Jones Industrial Average plunged after the opening but trimmed part of its losses and finished the day at 29.134, down 0.43% and further falling into bearish territory. Finally, the S&P500 shed 7 points to close the day at 3,647.
US Federal Reserve officials expressed concerns about the aggressive pace of monetary tightening but fears about a worldwide recession maintain the pressure on high-yielding assets.
Previous update: Bed Bath & Beyond (BBBY) started the week on the back foot as the meme stock fell lower for the fifth consecutive trading day. On Monday, shares of BBBY dropped by a further 4.5% and closed the trading session at a price of $6.37. Stocks extended their declines as well on Monday as all three major indices also fell for the fifth consecutive day. The recent slide has pushed the Dow Jones into bear market territory, while the S&P 500 saw its lowest close since 2020. Overall, the Dow Jones lost by 329 basis points, the S&P 500 fell by 1%, and the NASDAQ dropped lower by 0.6% during the session.
BBBY stock price
News out of another meme company had retail traders heading for the hills as AMC Entertainment (AMC) disclosed a potential stock sale. The move in question would be to issue up to 425 million shares of its APE preferred units, with the ability to sell even more in the future. It was widely known that the APE shares would likely be used to raise further capital for the company to reduce its debts, but the reality seems to be setting in. Shares of AMC and APE were down by 14.5% and 5.9%, respectively, on Monday.
Since the company announced its plans for a strategic turnaround a few weeks ago, little else has been mentioned by management. The strategy will see up to 150 stores closed around the United States, with the unloading of its workforce as well. It is widely believed that this might not be enough to reverse the company’s fortunes, and a lack of follow-up from the company should be concerning to shareholders.
BBBY 5-minute chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.