Why Bed Bath & Beyond Stock Skyrocketed Today
Shares of Bed Bath & Beyond (NASDAQ: BBBY) soared 34% on Monday after billionaire Ryan Cohen took a large stake in the company.
Cohen purchased 9.8% of Bed Bath & Beyond's stock via his investment firm, RC Ventures. The founder of online pet retailer Chewy and chairman of video game chain GameStop wants the home goods company to rein in what he sees as excessive compensation for its underperforming executives. He'd also like to see it streamline its turnaround efforts.
"We ... doubt the company can simultaneously buy back shares, cut expenses, invest in its infrastructure and growth, launch new offerings, and meet customer demand for core goods," Cohen said in a letter. "This plan, at least in its present form, does not seem viable."
Source Fool.com
