Wall Street's most controversial stock makes a student a millionaire
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The WallStreetBets group, which had already distinguished itself with the GameStop share in 2021, has pulled off another coup.
In the space of a month, Jack Freeman has become one of the richest students in the United States. The 20-year-old South Carolina college student acquired millions of shares of Bed Bath & Beyond stock a few weeks ago. And in hindsight, the stock market speculation world quickly realized it was the right thing to do.
While the company was in a major financial bind, with several payments in arrears, it was treated to the magic of "WallStreetbets." On this Reddit forum popular with hundreds of thousands of investors (especially in the United States), many of them organize themselves to find the latest nugget on the stock market, but also to change the course of things for the most troubled companies.
The Wall Streetbets have struck again
As in the case of GameStop, which saw its share price explode at the beginning of 2021, these small stock marketers had set their sights early last month on Bed Bath & Beyond. The company's share price exploded from $4.60 (as of July 26) to $23.08 by the middle of last week.
But while the stock had seen a fivefold increase in price, many shareholders found the opportunity too good and decided to close their position. Jack Freeman, a young mathematics and economics student at the University of South Carolina, did just that.
He was one of the first to take a position on the BBBY share price and managed to pocket $110 million. If this move has all the makings of the luck of the century, Jack Freeman has some arguments to defend his position. As soon as he came of age, he launched his own $25 million investment fund, playing the stock market with the savings of his parents and relatives.
Ryan Cohen: the domino that made everything fall
It should be noted that another investment fund, that of Ryan Cohen, GameStop's big boss, also took advantage of the situation to win nearly 59 million dollars. But it seems that Cohen's choice, which had been announced to the SEC days in advance, brought down the share price.
Trust was broken within the WallStreetBets group and everyone disassociated themselves from the group action. On Friday night, the stock ended its week with a dizzying drop of over 40% on the day alone. A situation that didn't get any better this Monday, with the stock price falling another 9%.