Beyond Meat in the Slaughterhouse
The higher they climb, the further they fall. Beyond Meat investors couldn’t have asked for a more sizzling year of gains. However, as ice cold number crunchers call it quits on the stock, it’s starting to smell like dead meat!
The easy money may be starting to dry up for Beyond Meat shareholders, having watched their stock get absolutely butchered since reporting earnings on Monday. The alternative meat-maker is set to make a killing from the plant-based food craze, but you wouldn’t know it looking at 13% declines on Monday, 10% declines yesterday, and God only knows what today!
There were never many fundamentals to be found at the Beyond Meat watering hole, but there were other investors. That’s sometimes all you need. It’s a tale of two market crazes colliding. On the one hand, unprofitable new stocks being born, and on the other, meat that isn’t meat. Even if these trends have long term prospects, all good things must come to an end on the stock market, and now, the game appears to be up even for those riding greater fool theory.
But wait, Beyond Meat’s putting up a fight. From the point of view of the company, perhaps it just needs to throw a few more coals on the barbie? In response to the sinking stock price, the firm is working on the nitty-gritty of a new deal to offer even more stock to investors! As a sequel to its first IPO, Beyond Meat’s second stock offering would be blockbuster stuff for market watchers. Whether it can reverse a changing tide of investor sentiment, we await to see!
