TLDR;
This video investigates the Bed Bath & Beyond (BBBY) investor community, a group of retail investors who mirrored the GameStop saga by placing their faith in Ryan Cohen. The video explores their unwavering belief in a turnaround, the theories they constructed, and the harsh realities they faced as the company declared bankruptcy and their shares were extinguished. It also examines the potential exploitation by figures within the community and the devastating impact on individual lives, highlighting the dangers of misinformation, denial, and the allure of quick riches in the stock market.
- Ryan Cohen's initial investment in BBBY sparked hope among retail investors.
- The community formed around the belief in a turnaround, fueled by theories and interpretations of Cohen's actions.
- BBBY's bankruptcy and share extinguishment led to financial losses and disillusionment.
- Figures like PP Seeds and Bill P potentially exploited the community for personal gain.
- The saga had a negative impact on the personal lives of many investors.
Introduction [0:00]
The video introduces the story of Bed Bath & Beyond (BBBY) investors, drawing parallels to the GameStop saga. It highlights the intense dedication and belief within this community, particularly their faith in Ryan Cohen. The video sets the stage for exploring the community's journey, the challenges they faced, and the ultimate outcome of their investment.
Ryan Cohen's Involvement [3:44]
In March 2022, Ryan Cohen announced a 9.8% stake in Bed Bath & Beyond (BBBY), a struggling HomeGoods retailer, mirroring his GameStop strategy. This caused excitement among investors, including GameStop enthusiasts like Hodgins and MIT neuroscientist AJ, who invested heavily based on Cohen's involvement. The influx of retail investors drove up the stock price, leading to the formation of the r/BBBY subreddit. However, BBBY faced more serious challenges than GameStop, including significant losses and debt. Despite this, Cohen tweeted an emoji that signaled to shareholders that he had their best interests in mind.
The Pump and Dump Allegations [9:16]
In August 2022, Cohen sold his entire position in BBBY, making around $60 million and causing the share price to plummet. This led to allegations of a "pump and dump" scheme, with some shareholders filing a lawsuit against Cohen for misleading them. The GameStop community had a history of interpreting Cohen's cryptic tweets, and the BBBY community followed suit. The theory that Cohen was communicating through tweets with emojis was considered far-fetched.
The Community's Reaction to Cohen's Exit [13:42]
Following Ryan Cohen's sale of his shares, the Bed Bath & Beyond community was fragmented. Some members left, while others remained and continued to believe that Cohen was still involved in the company behind the scenes. They pointed to events like Sixth Street providing a loan and Cohen filing trademarks for a company called Teddy as evidence of his continued involvement. The theory was that Cohen would acquire Bed Bath & Beyond through Sixth Street and relaunch it as Teddy through a reverse merger.
The Teddy Book Theories [19:01]
Bed Bath & Beyond investors analyzed Ryan Cohen's children's books, the "Teddy" series, for hidden clues about his plans for BBBY. They believed the books contained coded messages about a potential merger or acquisition. The community members, including those on the PP Show, tried to decipher the meaning behind the stories and images, interpreting them as references to financial strategies and signals to buy into BBBY.
Bankruptcy and the PP Show [22:06]
Bed Bath & Beyond announced layoffs and the CFO's death by suicide, devastating the community. Kais M, a prominent figure, went to the CFO's apartment building, convinced his death was faked. Despite the turmoil, the community persisted, with the PP Show becoming a central platform. In November 2022, Kais M impersonated Ryan Cohen to get information about his pregnant wife. By late March, the stock dropped below $1, but the community remained strong, with many continuing to engage with the PP Show.
The Bankruptcy and its Aftermath [27:28]
Bed Bath & Beyond filed for bankruptcy in April 2023, which forced investors to re-evaluate their preconceived notions. AJ, a scientist with 60,000 shares, appeared on the PP Show, arguing that the bankruptcy was part of a planned strategy. The community transitioned from denial to believing it was all part of the plan. The bankruptcy re-energized the community and attracted new investors.
Harassment and the Extinguishment of Shares [33:50]
Morans, a critic of the Bed Bath community, faced harassment, including doxing and threats to his family. The company released an 8K form, announcing that all shares would be canceled on September 30, 2023. The community saw this as a step towards the emergence of Teddy, while others knew it was over.
PP Seeds and Bill P [38:22]
PP Seeds and Bill P were identified as individuals potentially taking advantage of the Bed Bath and Beyond community. PP Seeds, host of the PP Show, was accused of platforming ideas that gave the community hope while taking donations. Bill P, an internet celebrity, gained prominence through interactions with Ryan Cohen and appearances on the PP Show.
Bill P's Involvement and the PP Show Live Stream [44:10]
Bill P's involvement with the Bed Bath community began with interactions with Ryan Cohen on Twitter. He appeared on the PP Show, where he discussed his thoughts on Teddy and Ryan Cohen's plans. Bill P invited the PP Show to stream from his office, creating excitement within the community. During the live stream, viewers donated over $25,000 to PP Seeds.
The Extinguishment of Shares and the PP Show Event [49:24]
On Friday, September 29th, the Bed Bath & Beyond stock was extinguished, leaving shareholders with nothing. The PP Show held an in-person event where Kais M announced he would give everyone one share of P Holmes stock, Bill P's grandfather's company, with the condition that they not sell it. The event was filled with platitudes and encouragements to continue their cause.
The Aftermath and the Impact on Investors [55:59]
Bed Bath & Beyond's assets were sold, and the company's shares no longer exist. The video explores the potential harm in investing in Bed Bath & Beyond and joining these communities, including financial losses and strain on personal relationships. Some community members set up fundraisers to support those who had fallen on hard times.
Conclusion [1:00:12]
The video concludes by reflecting on the GameStop Mania and whether it was ever truly about taking down Wall Street corruption. It emphasizes the importance of not assuming one is immune to falling for such narratives. The video questions whether Ryan Cohen owes the investors a definitive statement and highlights the genuine hope of many to be part of something greater.