My BBBY stock price prediction is $250 per share in 2022. I like the stock.
If you subscribe to my daily stock watch newsletter then you probably already know why I’m so bullish on BBBY stock.
I recommended the stock at around $9 and so far my subscribers are up almost 50%. But telling you guys to buy BBBY stock isn’t enough.
This isn’t financial advice. I’m just giving you my entire thought process and combining hours of research on one page.
BBBY Price Forecast: $250 Per Share
InvestorTrip’s 2022 Price target for Bed Bath & Beyond stock is $250 per share. The bull case is massive for BBBY shares because Ryan Cohen turned around Gamestop (GME) in 2020 and could do the exact same thing again..
BBBY Price Targets for 2022
|2022 Price Target (per share)||Details|
|Fair Value: $250||Bed Bath & Beyond increases revenue, pays off debt, and BBBY shareholders HODL|
|Bull Case: $500||BBBY stock soars to the moon like GME stock in 2021 and becomes YOLO stock of the year|
|Bear Case: $100||BBBY stock hits triple digits then early buyers take profits and the company issues a stock offering to raise capital (causing dilution)|
This research report is based on our YOLO stock model that predicts how BBBY stock will perform over the next few months. We’ve determined that a reasonable range is $100 to $500 per share.
Bed Bath & Beyond is an American retail chain founded in 1970 with stores located in the United States, Canada, Mexico, and Puerto Rico. The company sells home & kitchen items using the niche retail business model.
The company generated $1.5 billion in revenue during Q2 2022 and recently made several key changes including hiring a new CEO, Sue Grove.
Sue Grove purchased 50,000 BBBY shares under $5 along with several other key Bed, Bath, and Beyond insiders.
My YOLO Investment Thesis
When I was young, my mom took me shopping to Bed Bath & Beyond as a kid growing up in Washington, DC USA. Whenever I invest in a company, I prefer to have a personal experience using the company’s product and services. I’ve known this company for nearly 30 years but BBBY stock didn’t come onto my radar until Ryan Cohen bought a 9.8% stake in March 2022.
His average cost basis per share is around $15 plus he loaded up on Jan 20 2023 calls too. Check out a complete list of Ryan Cohen’s BBBY stock & call options purchases.
Billionaire Ryan Cohen has an impressive track record and I became extremely interested in BBBY stock once I heard he bought a significant stake. Here are some of his past achievements:
- Founded Chewy (CHWY) and sold the company to Petsmart in 2017 for $3.3 billion
- Became the largest individual Apple shareholder with over 6.2 million AAPL shares owned
- Bought a stake in Gamestop in Setpember 2020 and helped drive GME stock from $4 to $400 at its peak
Cohen is a brilliant investor and businessman who reminds me of a young Carl Icahn. He understands the niche retail business and looks to revive neglected companies by buying up a large stake, replacing key executives, and changing the company’s sales strategy.
Despite his massive fortune, Ryan Cohen’s RC Ventures holds only 2 stocks: GME and BBBY.
If you bought GME stock when Ryan Cohen took over the company then you would have 100x your money in just 4 months. GME sits at a $12 billion market cap and performed a 4 to 1 stock split all because Cohen got involved and attracted millions of retail shareholders on platforms such as subreddit WallStreetBets.
I regret doubting Cohen for 1 second and not going YOLO on GME stock in 2021. But sometimes God gives us a 2nd chance and I see a lot of similarities in BBBY stock the 2nd time around.
Is BBBY Stock The Next Gamestop?
Could BBBY stock be considered GME 2.0? Here are several reasons why BBBY stock can soar to the moon:
- BBBY stock has a 105% short float interest (meaning there are more shares short than available for trading)
- There are only 75 million shares outstanding, which means BBBY stock can move quickly due to low float
- GME went from $4 to $400 presplit and BBBY stock’s 52 week low is $4.38
- The same GME apes that made a fortune on GME will probably load up on BBBY because Ryan Cohen made them a ton of money.
- Mainstream media including Jim Cramer and CNBC continues to trash BBBY stock
- Short sellers like Loop Capital’s Anthony Chukumba are getting on TV bashing BBBY stock to put fear in retail investors
GME has a market cap of $12 billion while BBBY is just $1 billion. It makes sense that BBBY will eventually catch up to GME in terms of market cap due to Cohen’s influence and activist investor expertise.
Now, let’s talk numbers because a lot of short sellers complain about BBBY’s terrible financials. They do have a point but the majority of the damage was done before Cohen got involved.
Bed Bath & Beyond does around $7 billion in annual revenue and comparable same-store sales were down 24% in Q1 2022. Of course, things have changed now since retail investors got involved with BBBY stock.
Social media is full of BBBY shareholders who report visiting stores and making purchases. The company is getting free publicity from CNBC and news media outlets due to the massive short squeeze potential.
As the old saying goes, “all publicity is good publicity”.
But what’s most striking is BBBY’s paltry 0.13 price to sales ratio. Let’s compare BBBY with other retailers:
|Company||Price to Sales Ratio|
|Bed, Bath, and Beyond (BBBY)||0.16|
|Ross Stores (RST)||1.62|
At minimum, BBBY stock is worth at least $80 considering that the company’s price to sales ratio is way too low.
Short sellers are responsible for BBBY’s demise but now retail investors are buying up the stock and costing short sellers millions of dollars.
Remember: BBBY has a more than 100% short float and short sellers haven’t returned their shares yet. Utilization is at 100%, meaning there aren’t any more shares available for shorting. BBBY cost to borrow rate is over 30% and the shorts will run to cover their losses in the next following weeks.
All of this buying activity sent GME stock to as high as $480 during its peak in January 2021 and I believe BBBY can experience a similar spike.
Gamestop had a $36 billion market cap during the peak of the GME short squeeze and something similar could happen again.
BBBY would 36x to achieve similar results, which would put the stock at $468 per share. That’s the ideal scenario but I’m putting a $250 price target as a conservative measure (around $17 billion BBBY market cap).
Just like retail investors supported Gamestop and AMC, I expect Bed, Bath, and Beyond to experience a resurgence in store foot traffic and comparable same store sales.
BBBY stock will soar once the short sellers start to cover, which will attract FOMO buyers who want to get in on the action.
Don’t underestimate the power of a high flying stock with lots of buyer interest.
Nobody though GME stock would hit $480 but it did.
Nobody thought HKD stock would hit $2,000 but it did.
Impossible is nothing.
What do you think? Leave a comment below and share your thoughts on BBBY stock.
Disclosure: I’m holding 180 BBBY shares long plus Jan 20 2023 $80 calls. Check out my entire portfolio.
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