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Investing Lessons
How to Turn $27 Million into $110 Million in Just a Few Days
Did you hear about Jake Freeman, the 20-year-old who parlayed a $27 million investment in Bed Bath and Beyond (BBBY) into $110 million?
The news generated a lot of pearl-clutching, and for good reason.
For one, a twenty-year-old slinging that much money around is unusual.
For another, this was the ONLY position in the fund.
Yet another, Freeman happened to top-tick BBBY perfectly. (Translation: he sold at the top, right before the stock rolled over and died.)
And to top it all off, he made all this dough in a meme stock.
A meme stock refers to the shares of a company that have gained a cult-like following online and through social media platforms. These online communities can go on to build hype around a stock through narratives and conversations elaborated in discussion threads on websites like Reddit and posts to followers on platforms like Twitter and Facebook.
Meme stock communities can thus greatly influence the prices of those shares through coordinated efforts to, for example, initiate short squeezes in heavily shorted names. As a result, meme stocks can become apparently overvalued relative to their fundamentals yet remain…
