Bed Bath & Beyond (BBBY  ) shares were up by more than 80% Monday morning following the news that Chewy (CHWY  ) founder and ex-CEO Ryan Cohen had taken a big stake in the embattled retailer. However, shares ended up closing about 34% higher. Cohen was also one of the catalysts behind the short squeeze in Gamestop (GME  ) that sent shares soaring from $10 to over $400 in a few weeks time.

Cohen is considered an e-commerce visionary given his success with Chewy as one of the few standalone online sellers to beat Amazon (AMZN  ) at its own game for dominance of the pet market. For Gamestop and Bed Bath & Beyond stockholders, there is optimism that Cohen can help these businesses transition to the next century. Both also have similarities in that their businesses were almost left for dead, but the pandemic became an unlikely last gasp of hope as it led to a surge in spending on video games and home goods.

Cohen has close to a 10% stake in the company through his investment company, RC Ventures. Cohen believes the company is doing a poor job of adapting to new shopping habits and believes executives are overpaid and disconnected from their customers. He also believes the retailer needs to narrow its focus, upgrade its operations, and refine its inventory. He also thinks it should consider strategic alternatives like spinning off its Buybuy Baby unit.

Cohen's move follows a spirited and at times vicious battle that took place between activists and the company's Board of Directors in 2019. Part of the settlement was bringing on new CEO Mark Tritton who had spearheaded the e-commerce division at Target (TGT  ).

He has had some initial success in boosting online sales, shuttering some stores, and selling non-core assets. He has also appealed himself to shareholders with buybacks, improvement in same-store sales, debuting private label products, and a clear vision for the company's future.

Cohen disagrees and doesn't believe its turnaround will be successful. He sees more value splitting up the company and thinks it could be better off owned by a private equity company rather than as a public entity.