The American chain of home stores Bed Bath & Beyond sank on the stock market this Friday following it was confirmed that one of its most important shareholders has sold all its titles, which had recently been one of the favorite bets of many small investors and speculators.
Half an hour following the opening of Wall Street, the company’s shares plunged regarding 40%, losing much of the ground they had gained between last week and the middle of this week, a “rally” fueled by investors who gather on internet forums for speculative purposes.
The fall of Bed Bath & Beyond began on Wednesday and accelerated today following it was learned that billionaire Ryan Cohen, manager of the firm RC Ventures, has divested 10% of the company he controlled.
Cohen took over that stake this year and tried to force several changes in the company, but a few months later he has chosen to abandon his position and cash in taking advantage of the rise in the price of Bed Bath & Beyond.
According to calculations by the CNBC chain, the investor has pocketed at least 59 million dollars with the operation, although the figure might be higher due to the options he was handling.
This month, the movement of shares of Bed Bath & Beyond has been extraordinarily high and the firm has become one of the most talked regarding in internet forums where some users discuss and coordinate operations.
The company was already among the first that these small investors had identified when, at the beginning of 2021, what is known as the phenomenon of “meme” shares gained strength and its greatest exponent was the chain of video game stores Gamestop.
In most cases, these investors look for companies in distress and whose price is very low to speculate and try to make money quickly.
As an example, several specialized media have echoed in the last hours the case of a young American who allegedly made a profit of 110 million dollars by selling his shares in Bed Bath & Beyond this week, which they had bought for 25 million dollars. .
The chain of home products stores has seen its sales fall sharply in recent months and is suffering from liquidity problems following registering significant losses.
