The Clap Bed, Bath & Beyond’s (NASDAQ: BBBY) shares collapsed more than 16% as Ryan Cohen, an activist investor, said he is selling his entire stake.
The Deets RC Ventures, Ryan Cohen’s investment firm, proposed selling all its shares in the company as per a form filed with the SEC. The firm holds an 11.82% stake in Bed, Bath & Beyond.
Why Sell? Bed, Bath & Beyond faced a tough first half of 2022. The company reported lower-than-expected earnings and reported a net loss in Q1 2022. The company is also facing liquidity issues with the holiday season approaching.
Regardless of that, the stock has seen a 58% increase since the beginning of the year, as the stock was traded as a “meme stock”, with social media users pushing up the stock. This, however, may not be sustainable for much longer.