Math and Economics major at the University of Southern California, Jake Freeman has reportedly netted around $110 million by selling his stake in Bed Bath & Beyond
Representational image. AFP
It was no less than a dream for a 20-year-old college student who took a gamble, which paid off big. A Math and Economics major at the University of Southern California, Jake Freeman has reportedly netted around $110 million by selling his stake in Bed Bath & Beyond.
This happened when the company’s stock price increased over the summer and was only made possible because Jake sold his share before billionaire investor Ryan Cohen exited Bed Bath & Beyond. As per The Financial Times, Jake bought 5 million shares in the company in July at just under $5.50 per share. As a result of his investment, the 20-year-old reportedly owned 6 percent of Bed Bath & Beyond.
However, reportedly it was on Tuesday that the price of the stock dramatically surged to more than $27 per share, resulting in Jake selling his shares.
Regulatory filings reviewed by The Financial Timesrevealed that Jake sold over $130 million worth of shares using his TD Ameritrade and Interactive Brokers accounts.
Originally Jake spent a total of $25 million. He reportedly made this hefty investment with the help of his wealthy uncle. Surprisingly, on Wednesday the share of the company reportedly dwindled 16 percent in after-hours trading.
In addition, as Ryan Cohen sold his stake in Bed Bath & Beyond by Thursday, the shares fell 35 percent.
In his conversation with the media, Jake revealed that he didn’t expect so much profit.
The Financial Times quotes Jake as saying, “I certainly did not expect such a vicious rally upwards. I thought this was going to be a six-month-plus play…I was really shocked that it went up so almost.”
While responding to what he did after receiving the good news, Jake said that after selling his shares, he went for dinner with his parents in New York City’s suburb, where his folks live. Later on Wednesday, the 20-year-old jetted off to Los Angeles to return to his campus.
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