This photo illustration shows Beyond Meat’s Beyond Burger taken on February 29, 2024 in Chicago, Illinois.
Scott Olson | Getty Images
beyond meat has regained some meme mojo status, soaring 83% on Tuesday.
The food company known for its plant-based meat alternatives is having a great week, with its stock soaring more than 127% on Monday, its best day ever, after Roundhill Investments, which develops thematic ETFs, added its name to the Roundhill Meme Stocks ETF (MEME).
The gains continued Tuesday after Beyond Meat announced a deal with Walmart to expand distribution to more stores across the United States.
The addition of ETFs appears to have caused a short squeeze as investors who had bet on stocks were forced to cover their positions. More than 63% of tradable shares were sold short, according to FactSet.
Beyond Meat, 1 day performance
It’s a surprising turnaround for the stock, which has fallen more than 67% in the last week, as the company just announced it has completed a debt transaction. Shares closed last week at just 65 cents, but are now trading around $2 a share.
In fact, the stock has been under pressure for years, losing profits in each of the past five years. It soared above $230 per share after its 2019 IPO, but has since become a penny stock.
BYND, always
But this week’s rally is reminiscent of the days when Beyond Meat enjoyed meme stock status among retail traders who flocked to the stock based on sentiment rather than company fundamentals after a correction on online message boards.
In 2021, Bank of America named Beyond Meat a stock to watch on Reddit. It ended the year down more than 47%.
Beyond Meat’s return could be the latest sign of market froth, as investors flock to more speculative stocks despite soaring valuations, and perhaps even signal a market high.
In fact, Round Hill suspended the meme ETF due to lack of interest, but reinstated it earlier this month as retail traders dived back into this relentless bull market.
