Tag Archives: Bed Bath & Beyond Inc

Business

Bed Bath & Beyond, Carnival, Upstart and more

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A security guard stands next to a Bed Bath & Beyond sign at the entrance to a New York City store location.

Scott Mlyn | CNBC

Check out the companies making headlines in midday trading.

Bed Bath & Beyond — Shares of the retailer plummeted about 21% after the company missed revenue estimates and posted a wider-than-expected loss in the recent quarter. Bed Bath & Beyond also announced it is replacing CEO Mark Tritton.

Carnival — Shares of the cruise line operator fell more than 14% after Morgan Stanley cut its price target on the stock roughly in half and said it could potentially go to zero in the face of another demand shock, given Carnival’s debt levels. The call dragged other cruise stocks lower. Royal Caribbean and Norwegian Cruise Line Holdings each dropped more than 10%.

Upstart — Shares of the AI lending platform dropped roughly 10% after Morgan Stanley downgraded the stock to underweight from equal weight. The Wall Street firm said rising interest rates and a troublesome macroenvironment is hurting Upstart’s growth trajectory.

Bath & Body Works — The retailer’s stock fell nearly 8% after JPMorgan downgraded shares to neutral from overweight. The firm lowered its second quarter and full-year earnings estimates for Bath & Body Works after reducing second quarter average unit retail estimates by 4% year over year.

Teradyne — Shares of the semiconductor testing company slid 6% following a downgrade to neutral from buy from Bank of America. The firm said Teradyne’s exposure to Apple could ding the stock in the near term, given uncertainty around iPhone demand.

Tesla — Shares declined about 4% following a Wall Street Journal report that said Tesla is closing its San Mateo, California office and laying off 200 workers. CNBC confirmed the report.

General Mills — The stock jumped 5.7% after General Mills reported an earnings beat on the top and bottom lines. Still, the cereal company’s full-year profit estimates were weaker than expected, because of a consumer shift to cheaper brands.

O’Reilly Automotive — The auto parts company traded up more than 1% following an upgrade to buy from neutral from D.A. Davidson. The firm said O’Reilly is their “preferred way” to play the auto parts theme compared to AutoZone and Advance Auto Parts. Auto parts companies, which typically sell non-discretionary products, are expected to weather downturns better than other retailers.

McDonald’s — Shares climbed 1.5% following an upgrade to overweight by Atlantic Equities. The firm said hamburger chain will hold out as consumer spending slows.

Goldman Sachs — Shares rose 1.3% after Bank of America upgraded Goldman Sachs to a buy from a neutral rating and said the bank will thrive even in an economic slowdown.

— CNBC’s Yun Li, Tanaya Macheel and Samantha Subin contributed reporting

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Business

5 things to know before the stock market opens Wednesday, June 29

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Here are the most important news items that investors need to start their trading day:

1. Stocks looking for stability

Traders on the floor of the New York Stock Exchange, June 28, 2022.

Source: NYSE

Equities markets’ attempt to build on last week’s momentum has so far fizzled this week. Futures were little changed Wednesday morning following Tuesday’s rout. The S&P 500 is on the verge of wrapping up its worst first half of a year since 1970. Earnings season is just around the corner, but companies such as Nike have already given warnings that persistent problems such as inflation and supply chain snarls are weighing on companies’ performance.

2. Fed’s Mester on a July rate hike

Cleveland Federal Reserve President and CEO Loretta Mester gives her keynote address at the 2014 Financial Stability Conference in Washington December 5, 2014.

Gary Cameron | Reuters

Federal Reserve Bank of Cleveland President Loretta Mester, a voting member of the Fed’s policy-setting panel, said she may push for a bigger rate hike next month. “If conditions were exactly the way they were today going into that meeting — if the meeting were today — I would be advocating for 75, because I haven’t seen the kind of numbers on the inflation side that I need to see in order to think that we can go back to a 50 increase,” she said in an interview with CNBC’s Annette Weisbach. Investors will also be paying attention to comments Wednesday from Fed Chairman Jerome Powell, who is speaking at a European Central Bank forum.

3. Bed Bath & Beyond CEO leaving

Bed Bath & Beyond CEO Mark Tritton

Courtesy: Bed Bath & Beyond

Bed Bath & Beyond announced a leadership shakeup Wednesday morning, including the departure of CEO Mark Tritton, as the home goods retailer continues to struggle. Sue Gove, an independent director on the board, will act as interim chief executive. “We must deliver improved results,” she said in a news release. The company, which has faced pressure from activist investor Ryan Cohen, also reported quarterly results that sharply missed Wall Street’s expectations. Shares tumbled over 10% in premarket trading.

4. Tepid data out of China

For more than two years, overseas travelers have had to quarantine upon arrival in China because of Covid restrictions. Pictured here at Beijing International Airport on June 18, 2022, are passengers waiting to be taken to quarantine-designated destinations.

Leo Ramirez | Afp | Getty Images

Tight Covid restrictions and lockdowns in China took a toll on the nation’s economic growth during the second quarter, according to a new report. Various sectors suffered a slowdown, including transportation and services, according to the U.S.-based China Beige Book, which says it conducted more than 4,300 interviews in China during the three-month period. Hiring slowed down, as well, according to the study, and likely won’t pick up again until the Chinese government provides more stimulus this fall.

5. Disney extends Chapek’s deal

Bob Chapek, Disney CEO at the Boston College Chief Executives Club, November 15, 2021.

Charles Krupa | AP

Disney CEO Bob Chapek will be sticking around for at least a little bit longer as he pursues his goal of broad subscriber growth for Disney+. His contract was set to expire in February next year, but the board unanimously voted to extend his deal. Chapek has faced his fair share of controversy and tumult during his relatively short time in the top job. He faced criticism for his response to Florida’s so-called “Don’t Say Gay” law, and the company’s share price is down 38% so far this year. Chapek also had a tough act to follow, having taken the reins from popular longtime CEO Bob Iger, who oversaw Disney’s acquisitions of the Pixar, Marvel and Star Wars brands.

— CNBC’s Samantha Subin, Elliot Smith, Melissa Repko, Evelyn Cheng and Sarah Whitten contributed to this report.

— Sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.

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Business

Delta, JPMorgan, BlackRock and more

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Check out the companies making headlines before the bell:

Delta Air Lines (DAL) – Delta rallied 6.6% in the premarket after reporting a smaller-than-expected quarterly loss and predicting a current-quarter profit. The airline also said monthly revenue exceeded pre-pandemic levels for the first time in March.

JPMorgan Chase (JPM) – The bank reported quarterly earnings of $2.63 per share, 6 cents shy of estimates, though revenue exceed Wall Street forecasts. JPMorgan’s profit was down 42% from a year ago as deal volume slowed and trading revenue declined. The stock fell 1.1% in the premarket.

Bed Bath & Beyond (BBBY) – The housewares retailer reported an adjusted quarterly loss of 92 cents per share, compared with analyst expectations of a 3-cents-per-share profit. Bed Bath & Beyond instituted price hikes during the quarter, but it was not enough to offset a surge in shipping costs and other adverse factors. Bed Bath & Beyond shares tumbled 8% in premarket trading.

BlackRock (BLK) – The asset management firm reported an adjusted quarterly profit of $9.52 per share compared with the $8.75 consensus estimate. Revenue was essentially in line with forecasts. BlackRock was helped by a jump in inflows as assets under management rose to $9.57 trillion from just over $9 trillion a year earlier.

Antares Pharma (ATRS) – The specialty pharmaceutical company’s stock soared 48.7% in premarket trading after agreeing to be bought by Halozyme Therapeutics (HALO) for $960 million, or $5.60 per share, in cash.

PayPal Holdings (PYPL) – PayPal Chief Financial Officer John Rainey is leaving the payments company to take the same role at Walmart (WMT), effective June 6. Rainey will replace Brett Biggs, who was CFO since 2015. PayPal slid 3.5% in premarket action.

Sierra Oncology (SRRA) – The drug developer agreed to be bought by GlaxoSmithKline (GSK) for $1.9 billion, sending its shares surging by 37.5% in the premarket, while Glaxo shares rose 1.1%.

Charles Schwab (SCHW) – The brokerage firm’s stock gained 1% in premarket trading after Morgan Stanley named it a “top pick,” saying Schwab will benefit from rising rates and that it has an attractive valuation compared to its peers.

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Business

Own stocks that are cheap on a price to earnings basis

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CNBC’s Jim Cramer on Friday previewed next week’s roster of earnings and advised investors to stick to companies that are profitable yet affordable for investors to own.

“In this environment, you need to own companies that make stuff and do things profitably, but let’s add, also, with stocks that remain cheap on a price to earnings basis,” the “Mad Money” host said.

Even as the Fed tries to tamp down higher prices, “we’ve already seen signs that inflation is peaking in many areas. Unfortunately, so is the rest of the economy,” he later added.

Cramer said that on Monday, he’ll be keeping his eye on Russia’s invasion of Ukraine and its effect on commodity prices. He also said he’ll be watching the 30-year Treasury bonds.

“The 30-year, not the 20[-year], is where all the action will be once the Fed starts selling its bond portfolio. You need to know that this sell-off in the 30-year is signifying that much higher rates are on the way,” Cramer said. “Get ready for them. Higher long rates will likely hurt the Nasdaq like we saw today, not the Dow, which can hold up just fine because it’s full of tangible companies that fit my criteria.”

The Dow Jones Industrial Average on Friday rose 0.4%. The S&P 500 dropped 0.27% while the Nasdaq Composite tumbled 1.34%. All three declined for the week.

Also on Cramer’s radar is an expected “red-hot reading” in the March consumer price index releasing next Tuesday. 

“It’ll be inexorable and nasty until we see the peak in everything. Whatever the so-called consensus is, it’s almost always too low right now, and so that’s going to gaffe the bondholders and put pressure on the stock market that day,” he said.

Cramer also previewed next week’s slate of earnings and gave his thoughts on each reporting company. All earnings and revenue estimates are courtesy of FactSet.

Tuesday: Albertsons, CarMax

Albertsons

  • Q4 2021 earnings release before the bell; conference call at 8:30 a.m. ET
  • Projected EPS: 64 cents
  • Projected revenue: $16.76 billion

Cramer said he expects great results from Albertsons and is on the lookout for an announcement, whether they’re planning on going private or revealing a big buyback or dividend.

CarMax

  • Q4 2022 earnings before the bell; conference call at 9 a.m. ET
  • Projected EPS: $1.27
  • Projected revenue: $7.5 billion

“Any sign that this endless series of price hikes is over, or that demand has been destroyed … will reinforce my thesis that all the used car companies must be sold,” Cramer said.

Wednesday: JPMorgan Chase, Bed Bath & Beyond, BlackRock, Delta Air Lines

JPMorgan Chase

  • Q1 2022 earnings release at 6:45 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $2.72
  • Projected revenue: $30.57 billion

“Every time the Fed raises rates, these guys instantly become more profitable on a risk-free basis,” Cramer said. 

Bed Bath & Beyond

  • Q4 2021 earnings release; conference call at 8:15 a.m. ET
  • Projected EPS: 4 cents
  • Projected revenue: $2.08 billion

“The question here is simple: Will big new shareholder Ryan Cohen, of Chewy and GameStop fame, join the board, and will the Buy Buy Baby business be sold to private equity? I think it’s all on the table, and the stock goes up substantially,” Cramer said.

BlackRock

  • Q1 2022 earnings release before the bell; conference call at 8:30 a.m. ET
  • Projected EPS: $8.95
  • Projected revenue: $4.73 billion

Cramer said he’s interested in hearing about how “individuals might get to vote their index fund shares.”

Delta Air Lines

  • Q1 2022 earnings release before the bell; conference call at 10 a.m. ET
  • Projected loss: loss of $1.30 per share
  • Projected revenue: $8.74 billion

Cramer said he’s in favor of travel stocks but believes airlines are currently a tough sell “given how much money they can lose in a Fed-mandated recession.”

Thursday: Goldman Sachs

Goldman Sachs

  • Q1 2022 earnings release at 7:30 a.m. ET; conference call at 9:30 a.m. ET
  • Projected EPS: $8.95
  • Projected revenue: $11.98 billion

“I have never seen Goldman Sachs stock this cheap, ever. … I think you’re getting a fairly good chance to catch a bounce here, if not an investment, because by this point, it should be no surprise that Goldman’s first quarter was ugly,” Cramer said.

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Business

Stock futures are flat after Wednesday’s sell-off

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A trader works on the trading floor on the last day of trading before Christmas at the New York Stock Exchange (NYSE) in Manhattan, New York City, December 23, 2021.

Andrew Kelly | Reuters

Stock futures were flat in overnight trading Wednesday after the major U.S. stock averages fell sharply in the first losing regular trading session of the year.

Futures on the Dow Jones Industrial Average added about 25 points, or less than 0.1%. S&P 500 futures were little changed and Nasdaq 100 futures were less than 0.1% lower.

Minutes from the Federal Reserve’s December meeting revealed the central bank discussed reducing its balance sheet in another move to aggressively dial back its pandemic-era easy monetary policy.

The Fed’s plan to reduce the number of Treasurys and mortgage-backed securities it holds comes as it is already tapering its bond purchases and is set to hike interest rates after the taper concludes.

“Almost all participants agreed that it would likely be appropriate to initiate balance sheet runoff at some point after the first increase in the target range for the federal funds rate,” the minutes stated.

Stocks slid following the release of the minutes. The blue-chip Dow Jones Industrial Average closed 392.54 points, or 1.07%, lower after hitting an intraday record earlier in the session. The S&P 500 fell 1.94%. The tech-heavy Nasdaq saw its biggest one-day loss since February, losing 3.34%.

“If you ride a wave of liquidity to the upside and that liquidity starts to go away, I don’t think it’s terribly surprising that you’re going to see a reaction,” said Kathy Jones, head of fixed income at Charles Schwab.

“This was the year we were going to transition from extremely easy monetary policy and fiscal policy to less easy monetary and less expansive fiscal policy. That has to have some impact on risk assets that have risen because the discount rate was so low,” Jones added.

All 11 S&P 500 sectors fell in Wednesday’s session.

Investors await quarterly earnings reports from Walgreens Boots Alliance and Bed Bath & Beyond before the bell Thursday.

On the data front, the weekly jobless claims report is slated for released Thursday morning.

—CNBC’s Jeff Cox contributed to this report.

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Business

Bed Bath & Beyond (BBBY) shares tank on supply chain issues

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People walk out of a Bed Bath & Beyond store amid the coronavirus disease (COVID-19) pandemic in New York, January 27, 2021.

Carlo Allegri | Reuters

Bed Bath & Beyond shares tanked more than 25% in premarket trading Thursday as the company said it saw a steep drop-off in traffic in August, dealing a blow to its fiscal second-quarter results.

The big-box retailer is also dealing with industry-wide supply chain complications, which Chief Executive Mark Tritton said have been “pervasive.”

And the company saw steeper inflation costs escalating over the summer months, especially toward the end of its second quarter in August, Tritton said. This ate into sales and profits, he said.

Plagued by all of these obstacles, Bed Bath & Beyond slashed its revenue and earnings outlook for the year, and its third-quarter guidance looks underwhelming.

Here’s how Bed Bath & Beyond did in its second quarter ended Aug. 28 compared with what Wall Street was expecting, based on a Refinitiv survey of analysts:

  • Earnings per share: 4 cents adjusted vs. 52 cents expected
  • Revenue: $1.99 billion vs. $2.06 billion expected

In the latest period, Bed Bath & Beyond lost $73.2 million, or 72 cents per share, compared with net income of $217.9 million, or $1.75 per share, a year earlier. Excluding one-time items, the company earned 4 cents a share, which was less than the 52 cents analysts expected.

Revenue fell 26% to $1.99 billion from $2.69 billion a year earlier. That came in short of estimates for $2.06 billion.

“While our results this quarter were below expectations, we remain confident in our multi-year transformation,” Tritton said in a press release.

Bed Bath & Beyond has been remodeling its stores and launching in-house brands that sell everything from bath towels to cooking utensils to dorm decorations. In its prior quarter, it appeared as if those efforts were paying off and momentum was building in the business.

But over the summer months, that progress stalled. Tritton explained that as Covid-19 fears reemerged amid the spreading delta variant, the environment became more challenging to work through. In states like Florida, Texas and California, which account for a substantial chunk of sales, the business was hurt due to the rising coronavirus cases in the region, Tritton said.

That means not as many shoppers showed up during what is normally a busy back-to-school season for retailers like Bed Bath & Beyond. It could spell trouble for rivals like Target, Walmart and Kohl’s, which have yet to report results for the back-to-school period.

Bed Bath & Beyond expects third-quarter adjusted earnings to between breakeven to 5 cents per share, with sales ranging from $1.96 billion to $2 billion. Analysts had been looking for earnings of 28 cents per share on sales of $2.02 billion, according to Refinitiv data.

For the year, Bed Bath & Beyond lowered its expectations and is now looking to earn between 70 cents and $1.10 per share, on an adjusted basis, on sales of $8.1 billion to $8.3 billion.

Previously, it was calling for annual adjusted earnings of between $1.40 and $1.55 per share, on sales of $8.2 billion to $8.4 billion.

Analysts were forecasting adjusted earnings per share of $1.51 on revenue of $8.31 billion in fiscal 2021.

Find the full press release from Bed Bath & Beyond here.

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Business

‘Headed into a calm before the storm moment here’

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Next week could be a relatively calm stretch for Wall Street, CNBC’s Jim Cramer said Friday, but he advised investors to start preparing for trading days on the horizon.

“Get ready. After next week, the onslaught of earnings and the Labor Department’s all-important non-farm payroll number will strike,” the “Mad Money” host said. “After a crazy up and down … week, we’re now headed into a calm before the storm moment here, and that storm could get a lot worse depending on what happens in China, where there’s no calm to be found at all.”

Here’s Cramer game plan for the week ahead. Revenue and earnings-per-share projections are based on FactSet estimates:

“Mad Money” host Jim Cramer’s list of pivotal market events for the week of Sept. 27.

Mad Money

Monday: Fresh insight into Evergrande

The struggling Chinese property developer Evergrande has, so far, left investors in limbo about whether it will fulfill its $83 million interest payment on its U.S. dollar bond, which had a deadline of Thursday. Concern about Evergrande’s financial struggles spilling into the global economy rattled markets early in the week, but worries improved throughout the week.

“On Monday, we should get word about what will happen to the part of the Evergrande edifice that hasn’t been bailed out,” Cramer said. “I think the government will make sure the big shareholders do get wiped out, and that includes management.”

“I fully expect to learn of the [government] regime’s new enemies when we return to work Monday morning,” he added. 

Tuesday: Earnings from Micron and Thor Industries

Micron

  • Q4 2021 results: after the bell; conference call scheduled for 4:30 p.m. ET
  • Projected EPS: $2.33
  • Projected revenue: $8.23 billion

“Today the long knives were really out for these guys; three different firms warned of looming disappointment. I have to admit that those predictions were particularly daunting,” Cramer said. “My view? Why don’t we just wait and see how Micron does? Just remember that high-end semiconductor plays have little to do with Micron, so they might be worth buying if this quarter drags down the whole industry.”

Thor Industries

  • Q4 2021 results: Before the bell
  • Projected EPS: $2.98
  • Projected revenue: $3.31 billion

“While I like Thor … I also wouldn’t be a buyer here because we’re at the wrong stage of the business cycle” for the RV maker, Cramer said. “It’s too discretionary, and as the delta variant fades away, the stock market will say people will start traveling normally again. In other words, even if Thor blows away the numbers, I think there will be a lot of analysts who just say, ‘Well, that was the last good quarter.'”

Wednesday: Earnings from Cintas and MillerKnoll

Cintas

  • Q1 2022 results: Before the open; conference call set for 10 a.m. ET
  • Projected EPS: $2.76
  • Projected sales: $1.88 billion

MillerKnoll

  • Q1 2022 results: After the bell; conference call scheduled for 5:30 p.m. ET
  • Projected EPS: $0.54
  • Projected revenue: $651 million

“Wednesday gives us a great look into small and medium-sized businesses when we get results from Cintas, that’s the gigantic uniform company, and MillerKnoll, the office chair maker formerly known as Herman Miller,” Cramer said. “Both companies have been uneven lately, but I think they’ll tell very positive stories. Once they’re parsed, they might provide us with a more positive backdrop. I like them both.”

Thursday: Earnings from Bed Bath & Beyond, CarMax, Paychex and McCormick

Bed Bath & Beyond

  • Q2 2021 results: Before the bell; conference call set for 8:15 a.m. ET
  • Projected EPS: $0.52
  • Projected sales: $2.06 billion

“Bed Bath’s quarter might not be a barnburner, but I think the redesigned stores will change peoples’ impression of this formerly fossilized institution,” the “Mad Money” host said. “I like the prices. I like the merchandise. I like the management; I think the stock can go higher.”

CarMax

  • Q2 2022 results: Before the open; conference call slated for 9 a.m. ET
  • Projected EPS: $1.88
  • Projected revenue: $6.85 billion

“As long as there’s a chip shortage, the used car market will remain strong. That means CarMax should deliver a great number on Thursday,” Cramer said. “But let’s not be too particular: I like AutoNation, I like Lithia, I like Carvana. If you’re inclined, you’ve got my blessing to buy CarMax ahead of the quarter.”

Paychex

  • Q1 2022 results: Before the bell; conference call scheduled for 9:30 a.m. ET
  • Projected EPS: $0.80
  • Projected revenue: $1.04 billion

“This payroll processor is incredibly well-run and consistent, yet it never gets the respect it deserves … because it’s hostage to the labor market and to short-term interest rates,” Cramer said. “The stock tends to sell-off even after good results; buying Paychex into that weakness has been a great strategy.”

McCormick

  • Q3 2021 results: Before the bell; conference call at 8 a.m. ET
  • Projected EPS: $0.72
  • Projected revenue: $1.54 billion

“If you’re convinced that the economy’s slowing, you might want to buy some McCormick,” Cramer said. “The problem, of course, is that while it sure seems to be getting stronger, well, they might lose business as the delta variant peaks … and people feel more comfortable going out to dinner again. I’d avoid it for the moment, even though I like it.”

Friday: Covid data

“On Friday we tend to look back … and we see how Covid ‘did,'” Cramer said. “We’ve had a couple weeks where things seem to have calmed down, and we may be nearing a bizarre herd … immunity, where everyone has either gotten vaccinated or gotten sick because delta is so catchable. I think the infection numbers will continue to improve.”

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Business

Jim Cramer says ‘run with the bulls’ and buy these winning stocks

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CNBC’s Jim Cramer on Wednesday offered investors a basket of stocks he believes can continue to succeed irrespective of Federal Reserve policy.

“Forget the big picture stuff. There are two things you need to keep track of when you’re picking stocks right now: The sector and the company, which includes the people running it,” the “Mad Money” host said.

The bottom line, Cramer said, is investors have two choices. The first is listening to the “Fed-obsessed experts,” he said. The second is to “forget about the money supply or the central bank and just run with the bulls. It’s not like they’re hard to find in this fabulous market.”

Semiconductors

A sign is posted in front of the NVIDIA headquarters on May 10, 2018 in Santa Clara, California.

Justin Sullivan/Getty Images

Cramer said he believes the entire chip industry is “in bull-market mode” with a number of companies doing well, such as NXP Semiconductors, Marvell Technology and Qualcomm.

“But I prefer AMD and Nvidia because they make incredible products and they have fabulous leadership,” Cramer said, noting that AMD, under CEO Lisa Su’s direction, is looking to finalize an acquisition for Xilinx.

Nvidia, similarly, is trying to complete a deal for Arm Holdings, Cramer noted. If it clears the necessary regulatory hurdles, Cramer said Nvidia “will become the most important semiconductor company of our time.”

Financials

Many of the country’s largest banks offer investors “the greatest bargains” relative to the rest of the stock market, Cramer said. That’s especially true when considering they “could be just a few months away from a new rate hike cycle,” Cramer said. Banks benefit from higher rates.

Cramer said his favorites right now are Morgan Stanley and Wells Fargo.

“Morgan Stanley’s not a bank anymore: It’s a wealth advisory service that happens to do some investment banking on the side. That means it’s bank light. I like that,” Cramer said.

Wells Fargo, on the other hand, offers a “turnaround story” after scandal-ridden years, Cramer said, adding he believes in CEO Charlie Scharf to keep delivering improvements.

“One day I expect Wells Fargo to return to the high $50s [per share], where it was when all hell broke loose. Until then, just stay the course,” Cramer said.

Retail

A medical worker wears a protective face mask outside Best Buy in Union Square in New York City.

Noam Galai | Getty Images

Cramer said he believes it’s not too late to purchase shares of Best Buy and Bed Bath & Beyond. The former’s digital transformation and tech membership program should allow for additional success, Cramer said, while the latter is another example of a turnaround story.

“They have all the tech you need in terms of shopping and buying,” Cramer said of Bed Bath & Beyond. “But what they really have is something I like to call ‘whimsy,’ something that you could only really find at Costco until recently. I think CEO Mark Tritton will take Bed Bath for a multi-year run.”

Agriculture

Cramer said the “most unknown bull market” out there is agriculture.

“I’ve long been a fan of AGCO, but that Deere conference call last week [was] magnificent,” Cramer said. “I scoffed at Cathie Wood, the best money manager of 2020, when she said she was buying Deere for its tech — I owe her an apology. I apologize. She nailed it. The technology Deere talked about is truly revolutionary; it will save farmers billions of dollars in wages because everything is pretty autonomous. Deere’s still a buy.”

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Entertainment

AMC signs deal to lease the Grove and Americana

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A man walks past the AMC Georgetown 14 Theatres in Washington, DC on June 3, 2021.

Mandel Ngan | AFP | Getty Images

AMC Entertainment, the worlds largest cinema chain, is adding two more Los Angeles locations to its roster.

On Monday, the movie theater chain said it was taking over the leases of the 14-screen cinema at the Grove shopping complex in the Fairfax neighborhood and the 18-screen location at Americana at Brand in Glendale. Both locations were formerly operated by Pacific Theatres and are owned by real estate company Caruso.

In April, Decurion, which owned the Pacific Theatre and ArcLight Cinema chains, said it would not be reopening its 17 locations. AMC, which has collected more than $1.6 billion in cash from stock sales, had previously disclosed that it was looking at several of Decurion’s old leases, looking for locations that had strong ticket sales before the pandemic.

In 2018, The Grove theater was the second-highest grossing cinema and the Americana was the fifth-highest grossing cinema in the Los Angeles area. AMC is expected to reopen these theaters in August.

“These two theaters each are located in world-class lifestyle centers offering the best in retail, dining and entertainment options,” AMC CEO Adam Aron said in a statement Monday. “Each was conceived and is run by Caruso, one of the largest and most admired privately-held real estate companies in the United States.”

Expanding AMC’s footprint has always been at the heart of Aron’s strategy. Aron acquired Carmike, Odeon and Nordic shortly after taking the role of CEO in 2015.

Shares of the company were unchanged after the closing bell Monday, but are down more than 40% over the last month. The price of the company’s stock has been cut in half from its peak of $72.62, which was hit in early June of this year. The wild swings came as the stock was swept into the Reddit investing craze along with other “meme” stocks like Game Stop and Bed Bath and Beyond.

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