Bed Bath & Beyond Inc shares plummeted on Friday after meme stock maestro Ryan Cohen made good on his intention to dump his holdings of the home goods company.
Cohen, who is also the chairman of GameStop Corp (NYSE:GME), had nearly an 11.8% stake in the company before selling his entire position.
Earlier this week, Bed Bath & Beyond shares flew nearly 70% higher as a result of a massive short squeeze. Up until Cohen's disclosure, shares had gained another 17%.
READ: Bed Bath & Beyond at fever pitch as Ryan Cohen sparks meme trading frenzy
But on Friday, shares of the embattled retailer were down over 43% around US$10.52 just prior to market close.
Both Bed Bath & Beyond and GameStop are members of the so-called meme stock club, a group of US-listed companies where the share registers are dominated by institutional short sellers on the one hand and rabid retail investors on the other.
The results of this battle can be huge swings in the share price, which both companies have experienced in recent months.
Earlier this week, UBS analyst Michael Lasser reiterated a Sell rating on Bed Bath & Beyond shares and slapped a $3.50 price target on BBBY stock, which assumed about 80% downside risk to the current stock price.
Bed Bath & Beyond ended its most recent quarter with just over $100 million in cash as sales and store traffic weakend.
--Updates for share price--
Contact Angela at angela@proactiveinvestors.com
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