published20. August 2022, 08:13
Good businessCollege student, 20, earns $110 million playing meme stocks
20-year-old New York City resident Jake Freeman invested over $25 million in so-called meme stocks that his wealthy uncle loaned him. After a few weeks, the profit has quadrupled.
The college student bought five million shares in ailing retailer Bed Bath & Beyond in July. At the time, the share price was $5.50.
Instagram/bedbathandbeyond
On August 16, 2022, Bed Bath & Beyond’s price climbed above $27 per share when Freeman jumped at the opportunity and sold over $130 million worth of shares.
Instagram/bedbathandbeyond
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In July, Jake Freeman borrowed $25 million to buy shares in ailing retailer Bed Bath & Beyond.
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Within a few weeks, the value of the share had quintupled.
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Freeman sold his stake and made a profit of almost $110 million.
Jake Freeman, 20, has become a multimillionaire overnight: the college student on Tuesday made a profit of nearly $110 million by selling a stake in ailing retailer Bed Bath & Beyond.
Freeman acquired nearly five million shares of Bed Bath & Beyond in July. At the time, the share price was $5.50. A few days ago, Bed Bath & Beyond suddenly surged above $27 a share when Freeman jumped at the opportunity and sold over $130 million worth of shares. Two days later, the retailer’s share price plummeted 23 percent when the company’s second-largest shareholder announced plans to sell its entire nearly 12 percent stake in the company.
Uncle helped out with millions
He bought his five million shares in July with the financial backing of his wealthy uncle Scott, a former pharmaceutical executive. “I certainly didn’t expect such a vicious rally,” Freeman said.Financial Times». “I thought the value would recover over the course of more than six months. I was really shocked that it happened so quickly.”
The math student is by no means a beginner in the world of finance: before his studies, he had completed an internship at a hedge fund in New Jersey. Before he was 17, Freeman published a study on the risks of hedging a bond with a default swap with the fund’s founder Vivek Kapoor, a former manager at Credit Suisse. Jake Freeman and his uncle Scott recently bought a stake in the public biotech company Mind Medicine.
Bed Bath & Beyond is a so-called meme stock
Bed Bath & Beyond stock has been on a roller coaster for weeks. Similar to Gamestop, the titles belong to the so-called meme stocks. These are securities that are particularly popular among small investors. They call for the purchase of titles on the Internet – such as on Reddit – which ultimately causes prices to explode.
Now that Freeman got rid of his Bed Bath & Beyond stock, the college student went partying with his parents. The family lives in a New York suburb. A day later he flew back to the campus in Los Angeles.
