BBBY - Bed Bath & Beyond falls as traders weigh liquidity concerns

Bed, Bath & Beyond ( BBY ) started off the new week with a 4.35% decline in premarket action on Tuesday to follow on last Friday's 30% drop.

Some of the action on BBBY is pure bets on whether the company will file for bankruptcy or the news flow turns more positive. JPMorgan analyst Christopher Horvers weighed in on BBBY, by noting that it is difficult for retailers to go bankrupt. He said when it does happen it is often driven by vendors that tighten terms and credit providers that walk away when things turn particularly dark.

"Over the past few months, efforts to improve the relationships with vendors and to enhance liquidity have been uneven while the macro and housing backdrop are deteriorating," he updated in terms of BBBY.

JPMorgan has a Neutral rating on BBBY on the view the stock is trading on liquidation considerations and not valuation with its meme stock following adding significant volatility.

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