Shares of Bed Bath & Beyond Inc umped 23 per cent on Wednesday, leading a surge in meme stocks again as individual investors continued to dabble in highly shorted shares.
"It truly is a quality company shares are probably overvalued in the low teens and it is ridiculously overvalued at high US$20s," said Jake Dollarhide, chief executive officer at Longbow Asset Management in Tulsa, Oklahoma. Bed Bath & Beyond was the most actively traded single stock option on Wednesday, far ahead of popular options trades including Apple Inc and Tesla Inc, data from Options Clearing Corp showed.
"It's possible for the meme rally to spread since there is a lot of short-term capital entering the market. We've seen the same with Chinese meme stocks over the past few weeks as well," Siddharth Singhai, chief investment officer at New York-based hedge fund Ironhold Capital.