It was nothing short of a dream for a 20-year-old college student who took a gamble that paid off big. Jake Freeman, a math and economics major at the University of Southern California, has reportedly made about $110 million by selling his stake in Bed Bath & Beyond.
This happened when the company’s stock price skyrocketed over the summer and was only made possible because Jake sold his stake before billionaire investor Ryan Cohen exited Bed Bath & Beyond. According to The Financial Times, Jake bought 5 million shares in the company in July for just $5.50 per share. As a result of his investment, the 20-year-old reportedly owned 6 percent of Bed Bath & Beyond.
However, it was reportedly on Tuesday that the stock price dramatically exceeded $27 per share, resulting in Jake selling his shares.
Regulatory filings reviewed by The Financial Times revealed that Jake sold more than $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 huge investment with the help of his rich uncle. Surprisingly, the company’s stock reportedly declined 16 percent in after-hours trading on Wednesday.
In addition, as Ryan Cohen sold his stake in Bed Bath & Beyond as of Thursday, shares fell 35 percent.
In a conversation with the media, Jake revealed that he did not expect such a profit.
The Financial Times quoted Jake as saying, “I certainly didn’t expect such a vicious rally. I thought it was going to be a game over six months… I was really surprised that this was going to happen.” progressed so fast.
Responding to what he did after receiving the good news, Jake said that after selling his shares, he went to dinner with his parents in the suburb of New York City, where his people live. Later on Wednesday, the 20-year-old left for Los Angeles to return to his campus.