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.
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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