BBBY recently went from royghly $4.50 to $30 in just 3 weeks. That's almost a 600% move!

& then it gave it all back.

But why?

Why Did BBBY Stock Crash?

We'll first of all.. let's take a step forward. It's never good when insiders sell.

But there's one in particular worth mentioning.

Ryan Cohen (3rd name from the top) an entrepreneur and "activist investor". He founded e-commerce company Chewy in 2011, and was the company's CEO until 2018. Cohen is currently the chairman of GameStop.

What makes him such a hot topic in this meme stock rocket story is because his involvement in GameStop GME which was part of the OG meme stock saga.BBBY Stock Insider Trading

As a 10% owner he can definitely influence the stock price especially with his large retail trading following. So on Tuesday, Aug 16 when he sold 5,000,000 shares @ $21.17 for $105,845,055 it definitelly created some noise.

He still has 2,780,000 shares left. One wonders what he's planning to do with them.   

BBBY Stock Chart Meme Stock Rally Before After Cohen Ryan


Why Did BBBY Stock Rally In The First Place?

BBBY became known as a meme stock. What does that mean?

Basically when a ticker gets picked up by retail trading communities, most notoriously the Wall Street Bets or WSB for short Sub Reddit Community. Famous for it's big covid time runs like AMC or GME. Or it's clash with institutions like Citadel or Robinhood.

In March, Ryan Cohen had written a letter disparaging Bed Bath & Beyond’s operational plan, and in the process, announced that he owned 9.8 percent of the company. WSB takes notice and calls Ryan the "meme king". Short stock rally than a 5 month long sell off. In July BBBY hits all time lows.

Then in August, BBBY finds a bottom and starts moving up rapidy. The vol increased drastically. WSB found another meme stock. t's crazy when you see a ticker get mentioned this much. Quiverguant nicely charts ticker mentions on WallStreetBets sub reddit.


BBBY Stock Mentions Reddit quiverquant


Is BBBY Stock Still A Buy?

It's anyone's guess really. For me I've made a few trades on it, more day trades that took advantage of the vol more than betting on any sort of meme stock multi day momo.

That being said, these meme stocks like to poke their heads up again and again. Therefore I'd say it's work keeping on your radar and maybe after if forms a floor and starts crawling higher. We could see another squeeze. But that could be in a week, month or year. Don't hold your breath.