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Bed Bath & Beyond can fall 30% as Reddit frenzy slows, KeyBanc says

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People wearing face masks walk past the Bed Bath & Beyond store in New York City.
John Nacion | SOPA Images | LightRocket | Getty Images

Bed Bath & Beyond appears to have lost momentum from Reddit-inspired traders, and its fundamental turnaround also may be losing steam, according to KeyBanc Capital Markets.

The stock reemerged as a meme trade earlier this month but has pulled back as that retail trading energy has dissipated. Shares have fallen more than 14% in the past two sessions on daily volume of less than 7 million shares. Volume topped 100 million on June 2.

KeyBanc analyst Bradley Thomas reiterated an underweight rating on the stock, saying in a note to clients on Thursday evening that the retailer's sales appeared to dip in the back half of the spring and the shares still have significant downside.

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