Home Forex Markets Bed Bath & Beyond slump: Cohen netted $68 million, and 20-year-old college students earned hundreds of millions

Bed Bath & Beyond slump: Cohen netted $68 million, and 20-year-old college students earned hundreds of millions

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Bed Bath & Beyond slump: Cohen netted $68 million, and 20-year-old college students earned hundreds of millions


During Wednesday’s U.S. stock trading session, U.S. home furnishing giant Bed Bath & Beyond tumbled after Ryan Cohen, chairman of Gamestop and venture capitalist, announced plans to sell all of its BBBY shares. It is reported that Cohen has now benefited from the BBBY transaction of $681 billion in about seven months. Bed Bath & Beyond shares fell as low as $23 on Wednesday and fell further to $19.70 in premarket trading Thursday. Retail investors were gloomy, but a 20-year-old college student sold at the top of the stock price for a gain of $110 million.

Bed Bath & Beyond: Poor financials, but valued by VCs and retail investors

As a well-known home furnishing retail giant in North America, Bed Bath & Beyond once had a good reputation and profitability. However, since the epidemic and the rise of the online retail industry, home furnishing retail has been hit hard. In the earnings report released on June 29, 2022, Bed Bath & Beyond had dismal revenue, and bonds and loans were at subdued levels; it was reported that the company had hired Kirkland & Ellis, a law firm known for restructuring and bankruptcy. Help with your debt burden.

However, RC Ventures, owned by Ryan Cohen, acquired 7.78 million shares of Bed Bath & Beyond and an option to buy 1.67 million shares worth a combined $121.2 million. Ryan Cohen has a huge presence among retail investors, and his bet on Bed Bath & Beyond between mid-January and early March 2022 sparked retail interest in the stock. It is reported that in the last three weeks, the total net purchase of BBBY by retail investors reached 229.1 million US dollars.

Who is Ryan Cohen?

Ryan Cohen founded Chewy, an online pet food sales company, in 2011, then sold it to PetSmart for a staggering $335 million in 2017 before the company prepared for an IPO. Cohen launched his own venture capital fund, RC Ventures, became a professional investor, and became Gamestop’s second-largest shareholder in early 2021.

RC Ventures, a venture capital firm owned by Ryan Cohen, acquired Bed Bath & Beyond for a total of $121.2 million in stock and options from January to March this year. RC Ventures sold the assets this week for $189.3 million, according to an after-hours SEC filing on Thursday. Bed Bath & Beyond shares fell as low as $23 on Wednesday just after Cohen sold BBBY stock and options, and fell further to $19.70 in premarket trading Thursday.

Chart source: TradingView

Freeman, a 20-year-old boy at the University of Southern California, made a precise grab: $110 million in a month

Considering that Bed Bath & Beyond has tumbled for two days in a row, the retail investors who have flocked to it in recent weeks face big losses. However, Jake Freeman, a 20-year-old USC applied math and economics major, made a $110 million one-month bet on BBBY.

Freeman bought nearly 5 million shares of Bed Bath & Beyond for less than $5.50 per share in July, totaling $25 million, or more than 6.2%. Then, after a frenzied influx of retail investors pushed BBBY’s stock price higher, Freeman sold his holdings for more than $130 million, earning a massive $110 million profit. (Ashley)

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