Published in News
Beyond Meat: Big Comeback or False Hope?
Beyond Meat’s stock had a short surge, but weak sales, internal problems, and low demand make a strong comeback unlikely right now.
Martina Osmak
Director of Marketing
A Stock That Jumped — Then Fell Fast
In October, shares of Beyond Meat surprised many investors. The price jumped very quickly after retail traders talked about it online. Some people hoped it would become the next “meme stock.”
But the excitement did not last.
After rising sharply, the stock dropped again and returned to very low levels. This shows the rally was driven more by hype than by strong business results.
Meme Stock Energy Is Hard to Repeat
Many investors hoped short sellers would be forced to buy shares and push the price higher. While a large number of shares are sold short, this alone does not move a stock.
For prices to rise again, new buyers must step in. So far, that has not happened in a meaningful way.
Internal Problems Hurt Confidence
Beyond Meat also faces serious company-level issues.
The company recently fired its controller.
Management admitted there were weaknesses in financial reporting.
Some past business deals were too complex for the team to manage properly.
These problems make investors nervous. Before any real recovery, the company must first fix how it handles its finances.
Walmart Partnership Is Not Enough
Beyond Meat expanded its relationship with Walmart, which sounded like good news at first. However, this deal is no longer fresh, and it has not led to strong sales growth.
Without new partnerships or product success, this factor alone cannot lift the stock.
Plant-Based Meat Demand Is Slowing
A bigger issue is the market itself.
In the U.S., sales of plant-based meat are falling. Many shoppers now see these products as highly processed foods. Health-focused consumers are moving away from them.
Even people who want to eat less meat are choosing simpler or more natural options instead.
Is Beyond Meat a Buy Right Now?
For now, Beyond Meat looks like a high-risk bet.
The team at The Motley Fool did not include the stock in its list of top investment ideas. Their past picks, like Netflix and Nvidia, delivered huge long-term gains — but Beyond Meat did not make the cut.
Bottom Line
Beyond Meat’s recent price jump was exciting, but it does not change the bigger picture. Weak demand, internal problems, and limited growth make a major comeback unlikely in the near future.
For most investors, waiting — or looking elsewhere — may be the safer choice.
Source: https://finance.yahoo.com/news/beyond-meat-stage-epic-comeback-222000079.html