Shares of Bed Bath & Beyond Inc (NASDAQ: BBBY) jumped more than 80% in after-hours trading on Tuesday after the retail company made a series of exciting announcements that triggered a short squeeze.
Bed Bath & Beyond partnered with Kroger
Much of the short squeeze was attributed to its partnership with America’s largest grocery retailer, The Kroger Co.
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The strategic collaboration will see Kroger launch an extensive selection of Bed Bath & Beyond and Buy Buy Baby products on its website for millions of its customers to shop online. In the press release, Bed Bath & Beyond CEO Mark Tritton said:
Our collaboration with an exceptional retailer like Kroger underscores Bed Bath & Beyond’s authority in the home and baby categories. Today’s announcement is a key milestone, bringing our products to more customers than ever before and presents extensive opportunities for current and future customers.
Kroger also said it will put Bed Bath & Beyond and Buy Buy Baby products at select stores in 2022 to pilot a shop-in-shop experience.
What else could have contributed to the short squeeze?
Other announcements that might have contributed to the massive increase in the share price include a few executive leadership changes. The retailer also said its share repurchase programme was ahead of schedule.
According to Swaggy Stocks (stock market sentiment tracker), Bed Bath & Beyond regained popularity on Reddit after the bell – a sign that Tuesday’s news put BBBY back on the radar for the retail traders.
Before market close, BBBY was the 3rd most shorted U.S. stock, with 27% of its regular shares sold short. But the positive announcements made short-sellers cover their positions that added to the upward pressure on the stock price.
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