The multi-day rally for Beyond Meat, whose shares have risen more than 1,000% since hitting a new low last week, continued on Wednesday, as investors flocked to the plant-based meat distributor now considered the new “meme asset.”
Key data
Beyond Meat shares rose 63%, hitting around $5.80 shortly after opening trading on Wednesday, extending a rally started on October 17 and posting its intraday high of the year so far.
On October 16, Beyond Meat shares hit an all-time intraday low of $0.50, capping a 75% drop in the week following the announcement that the company had reached an agreement with its creditors for a debt swap that would significantly dilute shareholders.
Although it’s unclear what fueled the roughly 24% bounce seen last Friday, Beyond Meat shares have risen 1,096% from their intraday low to Wednesday’s trading price.
Why is Beyond Meat stock soaring?
After a slight boost on October 17, Business Insider reported on Monday about a trader named Demitri Semenikhin, who reportedly promoted Beyond Meat shares on Reddit after announcing the acquisition of 4% of the company’s shares.
Semenikhin was bullish on Beyond Meat’s debt move, suggesting in a YouTube video titled “Cabybara Stocks” that the move had “eliminated its previously high risk of bankruptcy and significantly strengthened its balance sheet.”
Shares of Beyond Meat surged 127% on Monday and continued higher after the close of trading, after Roundhill Investment announced Beyond Meat as its latest addition to its Roundhill Meme Stock ETF, which also includes positions in Opendoor, USA Rare Earth, Hims and Oklo, among others.
You may be interested: Trump’s plan to buy Argentine meat generates rejection among ranchers
The rally continued on Tuesday, up 146.2%, following Beyond Meat’s announcement of a distribution deal with Walmart, which will expand the availability of its products to more than 2,000 stores nationwide.
The all-time record price of Beyond Meat shares was positioned at $234.90, reached on July 26, 2019, well above the current value, representing a drop of 97%.
Key background
Beyond Meat emerged during the pandemic as a healthier food alternative, in a context in which more and more consumers were opting for plant-based proteins instead of meat. However, demand has waned in recent years, with sales falling 20% last quarter, while its shares have plummeted more than 70% so far this year.
Other companies in the plant-based meat sector have also suffered from decreased demand, such as Unreal Food, Sun Milk, Noops and OceanTastes, among others.
Beyond Meat, which went public in 2019, quickly became a penny stock after trading near $230 at its peak. In 2021, Bank of America analysts briefly included it on their list of “Reddit stocks to watch,” although the company closed that same year down more than 47%.
This article was originally published by Forbes US
Continue reading: For Hooters founders, saving the chain is a higher calling: ‘America needs us’
Follow business information in our specialized section
