Beyond Meat's Stock Surges in Latest Meme-Stock Rally

Beyond Meat's stock price has skyrocketed, doubling in value over the past four days and extending its four-day climb of over 1,000 percent. The surge has drawn comparisons to past meme-stock frenzies and has attracted retail traders who have bought into the company's strategy of using "dilution" to boost its stock price. The company's recent debt swap for stock and sharp fall in price seem to have attracted these traders, who have been buying and trading shares on social media platforms and Reddit boards. Beyond Meat's stock is still down about 97 percent from its record high, but its recent rally has made it a favorite target of short sellers, who are now buying back the stock they borrowed to protect themselves from losing more money.

Key Takeaways:

• Beyond Meat's stock price has doubled in value over the past four days, extending its four-day climb of over 1,000 percent.
• The company's recent debt swap for stock and sharp fall in price have attracted retail traders who have been buying and trading shares on social media platforms and Reddit boards.
• Two-thirds of analysts who cover the stock rate it a "sell," according to FactSet.
• Beyond Meat's market capitalization peaked at around $14 billion in 2019 and is currently down about 97 percent from its record high.
• The company has been a favorite target of short sellers, who sell borrowed stock in hopes of buying it back at a lower price later and pocketing the profit.
• The Beyond Meat mania has the ingredients of a "classic meme cocktail," said Ivan Cosovic, managing director of Breakout Point, a firm that tracks retail investing trends.
• A Reddit user who goes by "Capybara Stocks" has been at the forefront of the push to buy Beyond Meat's shares.
• Companies like GameStop, AMC Entertainment, Blackberry, Krispy Kreme, Opendoor, Rocket Mortgage, and Kohls were at the center of a trading frenzy led by retail investors in 2021.
• The sudden surge in Beyond Meat bears resemblance to the infamous GameStop rally of 2021.

Statistics:

• Beyond Meat's stock has surged 1,000 percent over the past four days.
• The company's market capitalization peaked at around $14 billion in 2019 and is currently down about 97 percent from its record high.
• Two-thirds of analysts who cover the stock rate it a "sell," according to FactSet.
• The number of comments on Reddit about Beyond Meat's stock have exploded this month, from a handful per day to several hundred in the past three days.
• The firm Breakout Point, which tracks retail investing trends, has identified the Beyond Meat mania as a "classic meme cocktail."

Sources:

• "FactSet"
• Breakout Point
• The New York Times
• Reddit