Bed Bath and Beyond really looked like it had what it takes to be cemented into the Hall of Fame along with GameStop. Short interest was sitting above 100 percent and mentions of the stock were steadily rising on social media platforms. Most importantly of all, an important name in the stock market bought BBBY stock and options, and he is none other than Ryan Cohen.
Ryan Cohen has been a popular name with the meme-stock crowd ever since he became the Chairman of GameStop during the 2021 meme stock mania that sent the company’s shares up more than 1,000 percent. Cohen has done a lot to change the company into something that would not go bankrupt, and he’s managed to keep GameStop shares afloat at a value more than 700 percent above where it was at the beginning of 2021. Because of this, he arguably took Elon Musk’s role of being the king of retail traders, and this Bed Bath and Beyond move seemed no different, with his venture firm RC Ventures buying a 10 percent stake in the company.
All these forces collided to bring BBBY shares up 500 percent by market close on Wednesday, and it looked like this thing couldn’t be controlled as short squeezes were occurring. That was until Cohen’s venture firm filed to sell their entire stake in the company, which sent shares down 20 percent the next day. WallStreetBets believed that the filing was not with the intention to sell, but instead for exercising options, so they stayed bullish throughout the day. Later, it was finalized that the shares and options were sold, which has permanently killed this rally. Bed Bath and Beyond fell by 40 percent after hours, and its meme stock counterparts have followed suit. Many are left with devastating losses now, and this is another story of what could’ve been.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.