Beyond Meat Continues to Surge Yet Again
- Beyond Meat stocks rallied 65% in two weeks
- Company’s trading halted due to volatile moves
- Plant-based food products likely to create niche market
During Tuesday trading, shares of Beyond Meat Inc., trading under the symbol of BYND, rallied 8.8%. The brand has now seen a run of 65% to the upside in the month of January alone.
The market has observed this stock soar as much as 18% over the course of the day, then pull back to be up just 3.6% before it was halted by the NASDAQ exchange to let the company take a breather.
BYND chart
Competition has money flying all over the markets
There have been a lot of headlines recently that have sent this stock soaring. New products are being announced by competitors, and speculators are betting that plant-based meats are starting to go mainstream.
Some of the competitors that have recently mentioned more plant-based meats being purchased include companies such as Burger King, and most recently Dunkin’ Brands. Dunkin’ even had Snoop Dogg as a spokesperson for the Beyond Breakfast Sausage patty with egg and cheese, served on a sliced, glazed doughnut.
When you start to see mainstream entertainers get involved in endorsing a product, it is starting to become mainstream – so goes the thought of many of Wall Street speculators. Despite having rallied 65% in just the first couple of weeks in 2020, the market is still down for the last three months at -1.5% at the time of writing.
Unicorns and the like
Unfortunately, Wall Street has a long history of pushing these unicorns through. Beyond Meat is one of the easiest ways to play the plant-based meat alternative, which people are speculating millennials will flock to.
However, the question is about profits, and something to pay attention to is that the estimated earnings-per-share level will be $-0.42 for Q4. If that’s going to be the case, this could be another stock like pets.com, or one of the many other .com stocks that emerged in the past. Wall Street has an image issue when it comes to companies like this, as there is a history of insider selling as soon as the public get their hands on the stock, leaving them “holding the bag.”
Beyond that, when you see companies like this one starting to make headlines, it can often show the end of a bullish run. That’s because the markets will start to offer large companies that aren’t making any money, while Wall Street throws as much money at them as they can.
Ultimately, Beyond Meat is probably going to be one of these scenarios. It clearly is one of the market leaders in this sector, but this sector is still very young and can only be looked at with a certain amount of skepticism.