Shares of Bed Bath & Beyond, Inc. (NASDAQ:BBBY) are falling Tuesday. The home furnishings company’s stock initially traded higher following third-quarter earnings results before pulling back.
- BBBY shares are under pressure. See the full story here.
What To Know: Bed Bath & Beyond reported third-quarter financial results, showing that the company continues to operate at a net loss. Bed Bath posted a loss of $4.5 million in the third quarter, or 19 cents per share. Bed Bath also reported third-quarter revenue of $257.19 million, missing estimates of $ 260.12 million and down 17.4% year-over-year.
Management said it has been trying to work toward profitability by reducing expenses. The company’s sales and marketing expenses saw efficiency improvements of 260 basis points to 14% of revenue, while technology and G&A expenses decreased by $13 million.
“The third quarter marked substantial progress towards achieving profitability through outstanding metric performance as well as material progress at both tZERO and GrainChain, two important platforms driving our long-term goal of becoming the ';Everything Home’ company,” said Marcus Lemonis, executive chairman and principal executive officer of Bed, Bath & Beyond.
Lemonis expects year-over-year revenue trends to turn positive in 2026. He noted that margin consistency, an additional $20 million in operating expense efficiencies and improved site conversion should help the company reach profitability goals.
BBBY Analysis: Bed Bath & Beyond’s stock is trading within its 52-week range of $7.29 to $12.65. This recent decline brings the stock closer to its support level of $7.79, which could serve as a critical point for buyers looking to step in.
The stock’s year-to-date performance shows a modest gain of 2.7%, indicating that while it has struggled to maintain upward momentum, it has not significantly declined over the past year. The relative strength index (RSI) currently sits at 47.54, signaling a neutral stance in momentum, which suggests that the stock is neither overbought nor oversold at this time.
Resistance is currently identified at $8.69, a level that will be crucial for bulls to overcome if they wish to regain upward momentum. A break above this resistance could signal renewed buying interest and potentially lead the stock back toward its 52-week high of $12.65. Conversely, if the price fails to hold above the support level of $7.79, it may indicate a shift in sentiment, warranting caution for investors.
Given the current setup, traders should pay close attention to the price action around the support and resistance levels. A decisive move above $8.69 could open the door for a rally, while a drop below $7.79 may lead to further declines, emphasizing the importance of these technical boundaries in guiding future trading decisions.
BBBY Price Action: Bed Bath & Beyond shares were trading down 1.69% at $8.45 at the time of publication on Tuesday, per Benzinga Pro.
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