A student at the University of Southern California reportedly earned $110 million on Tuesday by selling his shares in Bed Bath & Beyond at the height of a meme stock craze.
The stock price of Bed Bath & Beyond soared from $4.96 to $27.21 between July 18 and noon on August 16, reflecting a nearly 449% increase in less than a month as traders on social media coordinated to buy shares. Before the price began to decrease, Jake Freeman — an applied mathematics and economics major — dumped the entirety of his stake, netting $110 million.
“The significant appreciation of BBBY’s share price combined with the fact that I am leaving for school tomorrow played critical roles in closing the Position,” he wrote on Reddit.
Freeman purchased 5 million shares at $5.50 each last month using $25 million he raised from friends and family, according to Fortune, earning himself a 6.2% passive stake in the company. He made the purchase after a dismal first-quarter report showing the home goods retailer’s sales had plunged 25%, even as the company maintained $3.3 billion in debt and a mere $107 million in cash on its balance sheet.
“I feel that my acquisition of the Position was a watershed moment for BBBY, and I hope that in one form or another BBBY is able to capitalize off of this increased price to realign their balance sheet and operate for decades to come,” he added on Reddit. “I am truly going to miss being able to say ‘I am the second largest non-institutional…
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