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Vanguard Increases Stake In Bed Bath & Beyond; Can BBBY Recover? Are Meme Stocks A Buy?

Exchange traded fund company Vanguard has increased its stake in meme stock $Bed Bath & Beyond(BBBY)$ , according to reports. As of Dec. 20, it owned 8.57 million shares or a 7.31% stake, compared to 8.20 million shares in the third quarter.

BBBY is shutting down its Canadian stores. It plans to bring down its retail store count to 360 along with 120 buybuy BABY stores. Earlier, Bed Bath & Beyond declared that it did not have the cash to pay off its debts. Nor has it been able to find a buyer.

The company also said it had defaulted on its $500 million loan with$JPMorgan Chase(JPM)$ .

Caught between debt and a cash crunch, the company has plans of raising $1 billion in stock. The home goods stock found a hedge fund, Hudson Bay Capital Management, who will be a key investor, according to The Wall Street Journal. That will bring down the value of each BBBY share.

BBBY shares are trading around 2 apiece.

In its fourth quarter, the Union, N.J.-based company reported a 33% decline in sales of $1.25 billion and a loss of $3.65 per share, according to IBD MarketSmith.

The retailer rose over 200% to 53.90 in January 2021 and settled back to its long-term averages for the rest of the year. It then spiked more than 30% to 30.06 in March 2022, with frenzied buying after Ryan Cohen bought a 9.8% stake. Shares crashed in August after he exited his position.