Beginning in late 2020, Chewy co-founder Ryan Cohen mounted a successful activist campaign at GameStop . Cohen ousted the struggling gaming retailer's management team, installed himself as chairman, and helped turn GameStop into the leading meme stock , driving huge share price gains.
Now, he has a new target: Bed Bath & Beyond (NASDAQ: BBBY) . Cohen's RC Ventures has taken a nearly 10% stake in the underperforming home furnishings specialist (which also owns the buybuy BABY chain). In a recent letter to the company's board, Cohen urged the retailer to consider several options for maximizing shareholder value. Let's see what this means for Bed Bath & Beyond and its shareholders.
At times during 2021, Bed Bath & Beyond was able to latch on to the meme stock craze, briefly lifting the stock above $50. However, the company's inconsistent performance -- particularly a recent sales slowdown and guidance cut -- doomed each of these rallies. As a result, Bed Bath & Beyond stock ended last week at $16.18, down from an all-time high around $80 reached in early 2014.
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GameStop Activist Ryan Cohen Has a New Target: Bed Bath & Beyond