This Childcare Stock Collapses After Horrifying Report Exposes Baby Testing Positive for Cocaine—WTF

In the simplest explanation possible, KinderCare Learning Companies just got absolutely body-bagged. Shares of the “my daddy is a deadbeat” company tanked over 12% after short seller Bear Cave dropped a report that basically torched the company’s reputation and lit a fire under every investor still holding this thing like it wasn’t a ticking time bomb. 

(Source: Giphy) 

Now, of course, we’ve all seen short reports before. Most are just girthy PDFs with creative accounting allegations and a few overused charts. But this one? This one went straight for the jugular. In short, the report lays out what can only be described as a full-blown f*ing nightmare scenario for a company that’s supposed to be, you know... watching children. Among the many horrifying revelations: an 11-month-old baby tested positive for cocaine after attending a KinderCare center in Wisconsin. Yes, cocaine. Not a metaphor. Not a joke. (And no, I don’t know the exact location of that one for all you degenerates wondering…) 

But, but, but… that’s just the beginning here. The same Wisconsin facility had a rap sheet that included staff aggression and “undocumented injuries.” In other words, a whole bunch of sh*t happened and nobody bothered to write it down. Which, I’m not an expert in this, but is definitely not great when your customers are literal babies. 

(Source: Investing.com) 

If this were a one-off, maybe you could chalk it up to a rogue employee or a single dysfunctional location. But no—Bear Cave’s report suggests a pattern of negligence across multiple states. Toddlers wandering off onto busy roads. Kids locked in buildings and buses. Physical, verbal, and sexual abuse. Some of it went unreported for months until—surprise—videos and complaints started popping up online. Because apparently, it takes a TikTok to get someone to give a rats tail about this level of idiocracy. 

Of course, the people who are now aware of the fiasco are furious. The comment sections are a bloodbath. One of the top-rated YouTube comments under the report literally said KinderCare “needs to be closed permanently.” And honestly? They probably aren’t wrong. On the other hand, KinderCare, for its part, hasn’t said one word. No press release. No damage control. Just silence. Which, in this situation, reads less like “we’re gathering facts” and more like “we’re lawyering the F up”. 

(Source: StockTwits) 

What’s more is that this mess comes not long after the company finally went public in October 2024, after years of waiting for the right moment to do so. Turns out, the “right moment” was also the exact moment the universe decided to kick them in the teeth. Since listing, the stock’s down over 60%. And it’s not hard to see why investors are bailing. You don’t hold onto a stock that’s suddenly synonymous with toddler endangerment. 

So with that, what’s next for the cocaine day care? Well, as of right now, everyone is waiting to see if regulators get involved. And you know, to see if KinderCare finally makes a statement. Only then, will we even begin to see how many more skeletons crawl out of this hell hole. But regardless, if we’ve taken anything from this it’s this, this isn’t the same stain as an earnings miss or guidance cut. This is the kind of thing that sticks. You don’t come back from “the baby tested positive for cocaine.”

(Source: Giphy) 

So yeah, in the end, KinderCare’s not just in trouble. It’s in the middle of a full-blown credibility collapse. And unless they pull off some miracle-level jujitsu PR stunt—they’re going to be remembered for literally intoxicating childhood education. And that is definitely one that makes even the most hardened investors say, “Nah, I’m out.” For now, keep your eyes on this story, and place your bets accordingly, friends! Until next time…

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Stocks.News does not hold positions in companies mentioned in the article.