Curtis Nagle, who covers retailers for Bank of America, is giving up trying to figure out what’s next for GameStop and Bed Bath & Beyond.
Nagle is not convinced that GameStop’s fortunes have changed so dramatically in recent months as to justify the stock’s big pop in 2021. Shares are up about 60% in the past month and more than 1,200% this year.
He wrote that “non-fundamental factors” have lifted GameStop’s shares recently, namely “the number of conversations on Reddit” related to the stock.
Bed Bath & Berserk?
Nagle says that Bed Bath & Beyond’s shares “are no longer trading on fundamentals.” Still, he didn’t drop coverage of the stock entirely, and he believes the company has a solid strategy in place for a longer-term turnaround.
Nagle wrote that the rollout of new brands is a positive and that he was impressed by Bed Bath & Beyond’s plans to revamp its stores and close more underperforming locations.
He also thinks that the rebounding economy will boost sales for its wedding registry business, as well as spark spending by students looking to go back to college.