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Bed Bath & Beyond Fallout Offers a Warning to Meme-Stock Traders

  • Retail investors ‘learning a tough lesson,’ says Oanda’s Moya
  • Former meme stock darling has fallen 91% from 2021 peak
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Bed Bath & Beyond Falls to Lowest Level Since April 2020
Updated on

Investors betting that Bed Bath & Beyond Inc. would be the next meme stock to go to the moon are facing the harsh reality that fundamentals are particularly important during a market rout.

Shares of the home-goods retailer sank 24% to $4.99 on Wednesday, crashing to the lowest since April 2020, after the company reported disappointing earnings. It follows a tumultuous two-year stretch when the company captivated retail traders alongside stocks like GameStop Corp. and AMC Entertainment Holdings Inc.