Beyond Meat Supplies! 🍔

Table of Contents

Beyond Meat Supplies!

The coronavirus is saving lives; farmyard lives. The largest slaughterhouses and food plants in North America have closed, resulting in 25% of pork production and 10% of meat production being lost.

The market is betting that demand doesn’t diminish, and that meat won’t keep. In an undersupplied scenario, shops raise prices, and this might be good news for plant-based upstarts trying to break into the meat market and get a look in from non-veggie consumers. Beyond Meat has reversed all its coronavirus losses and then some.

The stock gained hundreds of percent after its initial public offering (IPO) popped last year. Its growth story sparked the imagination as plant-based positions became popular among ethical investors, and it soon took on a 20-billion-dollar valuation fitting for a giant of the meat sector.

It was way too early for that, though, so the bubble deflated and Beyond Meat found support at today’s levels. Now, 28% of the current float bets against the stock, 7% of the Invstr community.

The recent rally has been compounded by Starbucks partnering with the company to help it launch in China. This has happened sooner than expected, and the firm looks well-funded, too. But there are some snags with the whole “meatless meat for meat” thesis.

More than half Beyond Meat’s sales are made in restaurant kitchens, not supermarket aisles. There are no diners open, and the sector might not rebound instantly due to hiring lag and cautious consumer behavior.

The public also doesn’t have the cash to burn on the highest-quality meat products at the moment, so demand has probably fallen in tandem with supply. The plant-based stuff is actually still more expensive, so have the short-sellers got this one right? It’s close!

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.