Bed Bath & Beyond, GameStop, Weber rise as meme stocks rally

Yahoo Finance Live anchors discuss how meme stocks are performing on Tuesday.

Video Transcript

[AUDIO LOGO]

BRAD SMITH: Switching gears here, let's talk about meme stocks that we're tracking on the day. Meme stocks are on the move, again, this morning. We're watching shares of Bed Bath & Beyond, Weber, and GameStop as the meme stock craze continues.

Taking a look at those shares here premarket. You're seeing Best Buy move higher by about half a percent here. Weber and GameStop, you're also seeing those move higher as well. And actually, you get back to the replenishment rate as well--

BRIAN SOZZI: Grill replenishment?

BRAD SMITH: When you look at-- [LAUGHS] yeah, the grill replenishment.

BRIAN SOZZI: Which you coined. I have to give you credit. You-- I think you coined it, the Grill Replenishment Rate, the GRR.

BRAD SMITH: With [INAUDIBLE], yeah.

BRIAN SOZZI: OK.

BRAD SMITH: We had that conversation and we coined it during that segment. And you know, that's one of the things-- if you search for Weber stock right now, you'll find that article very quickly.

BRIAN SOZZI: You will.

[LAUGHTER]

BRAD SMITH: [INAUDIBLE]. But it really does come back to what the fanfare is right now. And also, what we had seen within Bed Bath & Beyond right now, too, I mean, that is really just a meme stock traders entry into this name because of all of the shorts that have been there.

The meme stock equation so much, or at least the Reddit retail frenzy that we had seen, the equation had really been looking at where some of the most shorted stocks are right now. And if you kind of just search on where the largest floated short interest is, that's exactly where those targets have been for the consortium of traders that are looking to squeeze their short positions.

BRIAN SOZZI: Great, great graphic by the team here, we have here. That is just very, very telling. Also aligns, I would say, with what we're seeing on the Yahoo Finance platform ticker-wise. Bed Bath & Beyond remains one of the top 10 tickers on our platform. AMC, GameStop, a lot of interest now.

The frenzy has pulled back compared to what we saw a couple of weeks ago. But in terms of Bed Bath & Beyond, you know, I tweeted this morning that the stock is now trading this week, actually since going back to last Friday, as if Bed Bath is gonna actually have a good holiday season. They're gonna blow out all of these towels that nobody's buying at 90% off.

I'd be very careful to make that assumption, especially ahead of their investor update that should hit tomorrow about 8:00 AM, where they're going or expect to outline new financing. I mean, this company is in dreadful fundamental position. And I think that will be reaffirmed tomorrow morning when Bed Bath comes out with that update.

BRAD SMITH: I mean, especially when Target's got the same towels. Walmart has the same towels.

BRIAN SOZZI: But scratchier. A little-- they're a little scratcher.

BRAD SMITH: Really?

BRIAN SOZZI: Yeah, they're little scratcher.

BRAD SMITH: All right, we need to scratching indicator on the towels out there that are in inventory right now.