In the digital realm, meme-stock enthusiasts have been blowing bubbles—filled with all kinds of theories—to lift Bed Bath & Beyond share price. In the real world, the struggling retailer is doing all it can to merely stay afloat.
Here is the bad news: Bed Bath & Beyond is using up cash faster than Wall Street expectations. The company said in an update on Wednesday morning that it expects to have burned through $325 million of cash in its second fiscal quarter ended Aug. 27—close to the amount that analysts expected the company to consume over two quarters, not one. That brings the total cash burn over the six months ended Aug. 27 to more than $800 million, which is greater than Bed Bath & Beyond’s current market capitalization.