• MindMed stock is the newest interest of BBBY champion Jake Freeman.
  • MNMD stock is up over 60% on Thursday.
  • The pre-revenue company studies psychedelic drugs for therapeutic uses.

Update: The price of MindMed (MNMD) rallied hard and broke through the three-month consolidative phase on Thursday, amassing a massive gain of 36.18% on the day to settle at $1.020. The share of the biotech company reached as high as $1.33 and soared roughly 77% at one point during the day, as news floated around, citing that a college student who made $110 million trading Bed Bath & Beyond stock is now targeting MindMed. The Financial Times (FT) reported on how the 20-year-old Jake Freeman and his family made $110 million in one-month trading Bed Bath & Beyond stock. There was no other fundamental factor or the company’s new developments driving such a huge move.

Despite the early decline in Wall Street indices, expectations of slower monetary tightening on signs that high inflation is cooling helped them recover some ground, in turn, adding to the strength in the MNMD stock price.

Just off the cusp of becoming a centimillionaire as one of the largest winners from Bed Bath & Beyond's (BBBY) 400% 1-month surge, 20-year-old Jake Freeman may be leading the charge into the newest meme stock: MindMed (MNMD). Shares of the clinical stage biopharma stock are up 60% to $1.21 at the start of trading on Thursday.

Also readBed Bath & Beyond Stock Forecast: BBBY loses 12.5% after Ryan Cohen files to sell stake

Freeman became an overnight sensation when it was revealed in a Financial Times article that he had made approximately $110 million from his stake in BBBY in just one month. The University of Southern California applied mathematics major used funds from his uncle and other unnamed "friends" to turn a $27.5 million stake, about 6% of the struggling home good retailer, into a $130-plus million windfall. Bed Bath & Beyond stock surged from below $5 to $28 between mid-July and mid-August as the meme stock community rallied behind it.

Freeman is rather young but is said to have interned for Volaris Capital for several years as a teenager.

After selling out of his BBBY stake, news reports say Freeman and his uncle have built a sizable activist stake in MindMed. This futuristic biopharma small-cap (even with the surge Thursday, it is worth just half a billion dollars) studies how psychedelic drugs can be used to treat anxiety disorders, ADHD and opioid withdrawal. Based in Vancouver, Canada, the pre-revenue firm has just 41 employees and lost $93 million in 2021.

MindMed stock forecast

MNMD stock smashed through the 20-week moving average on Thursday and got stopped out in the first hour just below the 50-week moving average at $1.33. That could be the range high, but normally these bandwagon meme stocks carry on for some time. With such a small market cap, it would be unsurprising if this one makes a new all-time high above the previous record of $5.77 on April 26, 2021.

Before that, there appears to be resistance at $5 and $3.50. The latter price appears to be a popular price for weekly openings and closings during 2021. Before MindMed stock makes it there, it will have to overtake resistance in the $2.80 to $3 range, which held up from August to November 2021 before 2022's major sell-off. Despite Thursday's surge, MNMD stock is down 59% over the past year.

MNMD stock chart

MindMed weekly chart

Previous updates

Update: The price of MindMed (MNMD) dashed higher on Thursday ending a whopping 36.18% higher at $1.02 by the close of play. It had gapped from a post-market close of $0.75c. It had run as high as $1.44c.  The stock was bid on the back of investors reacting to reports by the Financial Times and other online publications about 20-year-old Jake Freeman and how his family made $110 million in one-month trading Bed Bath & Beyond (BBBY -19.63%) stock. Freeman's uncle, Scott Freeman, was a co-founder and executive with MindMed. The company FCM MM Holdings owned by Freeman is pushing MindMed to make changes that could reward its shareholders.

Fundamentally, whether the hype can continue over the remainder of the week and beyond will depend on the traction that can be made with the company's plans for the third quarter, but the technical outlook is bearish while below the $1.05 June highs as the price moves back towards the $0.75c gap which could be closed in coming days. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD rises toward 0.9650 amid renewed dollar weakness

EUR/USD rises toward 0.9650 amid renewed dollar weakness

EUR/USD has gathered bullish momentum and advanced to a fresh daily high near 0.9650 in the American session on Wednesday. The renewed selling pressure surrounding the greenback amid improving market mood seems to be fueling the pair's rebound.


GBP/USD extends recovery beyond 1.0750 in volatile session

GBP/USD extends recovery beyond 1.0750 in volatile session

Following an initial spike to 1.0850 on BoE's intervention in gilt markets, GBP/USD lost nearly 300 pips. With the dollar losing its strength after Wall Street's opening bell, however, the pair rose above 1.0750 and turned positive on the day.


Gold rebounds above $1,650 as US yields retreat

Gold rebounds above $1,650 as US yields retreat

Gold gathered bullish momentum and recovered above $1,650 from the multi-year-low it touched at $1,615. The benchmark 10-year US Treasury bond yield is down over 4% on the day following the BoE's intervention in the gilt market, helping XAU/USD stretch higher.

Gold News

Where Bitcoin, Ethereum prices are headed as correlation with S&P 500 declines

Where Bitcoin, Ethereum prices are headed as correlation with S&P 500 declines

A mysterious Bitcoin whale moved a large volume of BTC that was dormant for a decade. Amidst the breaking correlation between Bitcoin and S&P 500, analysts are bearish on BTC.

Read more

Invesco Nasdaq Trust (QQQ) ETF hopes for pivot but faces Apple headwinds

Invesco Nasdaq Trust (QQQ) ETF hopes for pivot but faces Apple headwinds

Stocks remain challenged this morning by competing news as overall volatility levels remain close to recent highs. A brief attempt at a rally on Tuesday failed miserably, and now the market opens negatively after having attempted to move higher during the premarket.

Read more