In case you missed it, Bed Bath & Beyond Inc. (Nasdaq: BBBY) had a rough time last week. The stock lost almost 20% of its value on Thursday … and then proceeded to drop another 44% in after-hours trading.
By Friday’s close, BBBY was 60% lower than its Tuesday peak.
It was neither a bad earnings release that tanked the stock, nor was it negative guidance. The retailer’s woes have been common knowledge for years.
No, it was news that activist investor and GameStop Chair Ryan Cohen had liquidated his large position in the company after purchasing more than 7 million shares earlier this year.
Insider selling is never a great sign.
And it’s made worse when we’re talking about a meme stock that manages to stay afloat with rumors, innuendos and mentions on social media.
What happened to meme stock BBBY and how can you learn from it?
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