bebe stores, inc. (NASDAQ: BEBE)
bebe stores is having a rough day in the market today. At the open, the stock was trading slightly in the red. Throughout the day, it worked to break the losing streak, making it to the green for a short time around noon. However, for the most part, it has traded on losses. Then, the stock started to spiral out of control, falling deeper and deeper into the abyss before being halted. Below, we’ll talk about what we’re seeing from BEBE, why, and what we’ll be watching for ahead.
What We’re Seeing From BEBE
As mentioned above, bebe stores is having a rough day in the market today. When the trading session started for the day, the stock was trading slightly red, where it has been for the majority of the day. Nonetheless, minutes ago, things went from bad to worse as the stock fell into big losses before being halted. At the moment (1:34), BEBE is trading at $5.55 per share after a loss of $0.90 per share or 13.95% thus far today.
What’s Going On With BEBE
As is usually the case, our partners at Trade Ideas were the first to bring the halt on BEBE to our attention. As soon as they did, the CNA Finance team went to work to see what was going on with the stock. While it took some digging, we believe that we’ve found the story. Unfortunately, the declines seem to be the result of store closures.
According to a report on Bloomberg, bebe stores has decided that it will be closing all brick and mortar locations. This is, of course, as it means that the company will no longer be driving revenue from brick and mortar locations, and has decided to give up on that side of business. As a result, upset investors are dumping the stock.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on BEBE. While we watch, we’re interested in learning more about the store closures, what led to this decision, and what the next steps might be for BEBE. Nonetheless, we’ll continue to watch the story closely and bring you any updates as the news breaks!
Update 1:52 – BEBE resumes and continues to fall. The stock is currently trading at $5.08 per share after a loss of $1.37 per share or 21.24% thus far today.
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[Image Courtesy of Wikipedia]