It is surely nice to hear that in a time of inflation that has not been seen for years and in a time where economies are plummeting globally, someone has managed to earn a lot of money, which in this case will definitely change his life.
With more and more people using the internet, meme stocks are becoming more popular. In July, a U.S. university student bought 5 million shares of Bed Bath & Beyond for $5.50 each, and then a month later, in August, he sold those shares for $27 each, making a profit of $110 million.
The home goods retailer’s share price went up throughout the course of the summer. A stock that gets popularity through the use of social media is referred to as a “meme stock.”
The student, Jake, was able to make a significant profit because he sold his shares before billionaire investor Ryan exited the struggling home goods retailer following a stunning rally in the meme stock this month. Jake is pursuing a degree in applied mathematics as well as economics.
In July, for $5.50 each, the young man had purchased 5 million shares of Bed Bath & Beyond. Jake invested a total of $25 million with the support of his wealthy uncle. On August 16, when the share price had increased to $27, he made the decision to sell the shares.
Freeman had a six percent stake in the company, which increased in value as a result of the “meme stock” boom on social media. According to a story published by the Financial Times, the college student, who was just 20 years old at the time, used his accounts with TD Ameritrade and Interactive Brokers to sell stock that was valued at more than $130 million.
After he sold his shares on August 16, the stock dropped by 16 percent the next day after rumours surfaced indicating that a major billionaire investor named Ryan could sell his stake in the struggling company. By the 18th of August, its shares had dropped by 35% as a direct result of Ryan’s selling his stake in Bed Bath & Beyond.
“I certainly did not expect such a vicious rally upwards… I thought this was going to be a six-months-plus play… I was really shocked that it went up so fast,” Jake said.