Shares of Bed Bath & Beyond Inc. (BBBY) have been on a downward spiral for the past eight trading days. The stock, which soared 92.1% on February 6th, has since been in a steady decline, plummeting 69.1% and closing at its lowest price since January 9th. This is the longest losing streak since November 7th, 2022, when the stock dropped for nine consecutive days.
The sell-off began shortly after the company announced plans to sell convertible preferred shares and warrants to buy common stock in an effort to avoid bankruptcy. Over the past three months, BBBY has lost 48.3% of its value, while the S&P 500 (SPX) has gained 4.4% over the same period. Over the past year, BBBY has plummeted 88.8%, and the SPX has lost 7.7%.
The continuous decline of BBBY’s stock price is concerning for investors, as the company is struggling to stay afloat. The coronavirus pandemic has had a significant impact on the retail industry, and Bed Bath & Beyond has been one of the hardest hit. With physical stores closed, the company has had to rely on its online presence to generate sales. However, the company’s digital sales have not been enough to make up for the losses in-store, as evidenced by its declining stock price.
The company has also been struggling with its debt. BBBY’s long-term debt has grown to $2.2 billion, a significant portion of which is due in 2021. This has caused investors to worry that the company may not be able to pay back its debt in the near future, leading to further stock price declines.
Bed Bath & Beyond is trying to turn its fortunes around, but it will be an uphill battle. The company has announced plans to close 200 stores over the next two years, and it is looking to reduce its long-term debt and improve its financial position. Additionally, the company is investing in its online presence, as it looks to capitalize on the shift to online shopping.
It remains to be seen whether these efforts will be enough to help Bed Bath & Beyond avoid bankruptcy and turn its fortunes around. In the meantime, investors will be closely watching the stock’s performance to see if the company can make a comeback. If the company is able to get its finances in order and successfully transition to an online-focused business model, it could be well-positioned to take advantage of the current retail environment and make a strong recovery.
