It will be an interesting week ahead for U.S. listed company Bed Bath and Beyond (NASDAQ: BBBY), as Reddit investors continue to mobilize a coordinated short squeeze.
BBBY stock is one of the most heavily shorted stocks on the NASDAQ, with market data showing the company’s short float currently stands at around 52 percent.
But those institutional short sellers are now firmly in the sights of the army of the so-called ‘Apes’ over on Reddit.
According to Ape Wisdom, which tracks stocks mentioned by users on Reddit, BBBY stock is currently the most mentioned stock, with interest in BBBY exploding late last week.
This was the reason why on Friday, BBBY stock surged over 20%, on no new company news.
Looking at top-line fundamentals it has been a pretty average period for the retailer, with its fiscal 2022 first quarter results showing declining sales and widening losses.
But according to meme stock analyst and former billion-dollar hedge fund manager, Will Meade, the BBBY share price could be about to rise even further.
“In my opinion this has just begun to squeeze. BBY still has 52% short interest according to S3 data.
“Again this an identical short squeeze setup to GameStop. If you’re looking for the next GameStop, it’s Bed Bath & Beyond.”
Mead says he has a price target of $15 for BBBY. It closed on Friday at $8.16.
Apes still a force to be reckoned with
While it’s yet to be seen if the BBBY short squeeze can extend into the coming week, short sellers have been reminded that the Reddit apes remain a force to be reckoned with, even in the current volatile market conditions.
The Apes have also no doubt been emboldened by the more mysterious short squeeze on Hong Kong-based company AMTD Digital (NYSE: HKD).
The company, which describes itself as Asia’s one-stop comprehensive digital solutions platform, listed on the NYSE on July 16.
By August 2, its share price had surged more than 10,000% to a high of $1,679 per share.
Contrary to some mainstream media reports, there is no evidence of a short squeeze coordinated on any public internet forum.
Some analysts have suggest the squeeze may have been coordinated via a private internet chat group, while Hindenburg Research founder Nate Anderson suggested a “mega squeeze” could have involved some of the more questionable characters behind the obscure company.
“We have no position and have just been watching the madness from the sidelines,” he said.
“The company is ~88.7% owned by AMTD, a sketchy Hong Kong-based underwriter we have written about previously. The Chairman of AMTD, Calvin Choi, was handed a 2-year ban from the Hong King’s securities regulator over alleged undisclosed conflicts of interests in an IPO.”