Us Student Makes $110m Profit Trading Meme Stock Bed Bath & Beyond

Freeman, an applied mathematics and economics student at the University of Southern welcome to gamestop meme California, said he had been “shocked” at the speed of the surge in the stock.

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They rose to prominence early last year when shares in ailing companies such as the US retail firm GameStop soared, partly driven by a campaign to punish hedge funds betting that their value would fall. Bed Bath & Beyond shares rose to $28 https://xcritical.com/ on Tuesday, when Jake Freeman is thought to have sold most of his stake. BBBY shares dropped in after-hours trading on Wednesday after Ryan Cohen, GameStop’s chair and 12% shareholder, disclosed he was planning to sell his entire stake.

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When his stake in BBBY was revealed last month he wrote to company’s board warning that the retailer was “facing an existential crisis for its survival”. “To effectuate its survival, BBBY needs to cut its cash-burn rate, drastically improve its capital structure and raise cash,” he said in the letter according to a copy filed with the SEC. Jake Freeman and his family bought almost 5m shares in the struggling US homeware retailer at less than $5.50 a share in July for a total outlay of about $25m. Freeman, who has regularly interned at New Jersey hedge fund Volaris Capital, said he celebrated the trading success by going to dinner with his parents in the suburbs of New York City where they live.

  • A 20-year-old US university student has made a $110m (£91m) profit with a one-month bet on the meme stock Bed Bath & Beyond.
  • Although those shares eventually slid back down, the meme stock trend has had a revival this summer, with BBBY shares leading the charge.
  • Bed Bath & Beyond shares rose to $28 on Tuesday, when Jake Freeman is thought to have sold most of his stake.
  • When his stake in BBBY was revealed last month he wrote to company’s board warning that the retailer was “facing an existential crisis for its survival”.

A 20-year-old US university student has made a $110m (£91m) profit with a one-month bet on the meme stock Bed Bath & Beyond. Although those shares eventually slid back down, the meme stock trend has had a revival this summer, with BBBY shares leading the charge. They rose as high as $28 on Tuesday, when Freeman is understood to have sold most of his stake. The Bed Bath & Beyond shares, which trade on the ticker BBBY, dropped to $23 on Wednesday, and were down a further 14% in pre-market trading on Thursday to $19.70. The student, who at one point owned more than 6.2% of BBBY via his Freeman Capital Management fund according to US Securities and Exchange Commission filings, said he raised the $25m stake from friends and family. Meme stocks are those that soar independently of the success of a business, thanks to hype on message boards and social media.

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