Despite a massive loss, Bed Bath & Beyond stock is surging

Bed, Bath & Beyond Inc (BBBY.O) shares rose sharply in high volume trading on Monday, as retail investors speculated that the struggling home goods retailer could be a potential acquisition target.

The company’s shares were last up 35% at $1.77, on track for their biggest one-day percentage gain since Aug. 8.

According to Refinitiv data, as of midday, traders had exchanged $114 million worth of Bed, Bath & Beyond shares, nearly matching the company’s total stock market value of $157 million.

Bed Bath & Beyond has struggled for years with declining sales as it competes with Amazon (AMZN.O) and other competitors, with investors pointing to issues such as cluttered stores and an overreliance on discount coupons. In 2022, its stock fell 83%.

Bed Bath & Beyond said in a filing last week that it expected a net loss of $385.8 million for its fiscal quarter ending in November, including $100 million in impairment charges. The company is expected to release its earnings report early on Tuesday.