Bed Bath & Beyond Inc. (NASDAQ:BBBY) has peaked on July 3rd and since then it has been around the $59 mark though there have been slight movements.
FMHR traders Jon Najarian and Josh Brown were having a Bulls Vs. Bears debate on CNBC about Bed Bath & Beyond Inc. (NASDAQ:BBBY). Najarian was bullish on the stock and he kicked off the debate with the buyback announcement by the company which helped the stock. Bed Bath & Beyond Inc. (NASDAQ:BBBY) announced $2 billion share buyback in addition to what the company has already been doing. He thinks this is a main reason to own the stock and he said that the hammering it has received would actually benefit the investors who buy it currently.
Najarian said that people enter into Bed Bath & Beyond Inc. (NASDAQ:BBBY) stores specifically to buy things unlike the electronic showrooms where people come visit and then decide about buying. He also said that Amazon.com, Inc. (NASDAQ:AMZN) is a competitor to the company, however the situation is not as bad as it is in the consumer electronics sector.
Brown was bearish about the stock and he feels that the stock is not performing well at all. He said that the earnings growth is in single digits currently and decelerating while the revenue growth is less than 2%.
“The stock is a disaster, it’s going lower. Every moving average is heading in the wrong direction” Brown stated.
Brown said that the business is being destroyed by both online and offline competitors and that Bed Bath & Beyond Inc. (NASDAQ:BBBY) doesn’t have aggressively priced product whereas people can get similar products cheaper in super markets.
“They have already told you that earnings this year are going to disappoint. There are 5000 other stocks trading at a cheaper multiple. “Brown said.