Remember Beyond Meat? That company that makes fake burgers that somehow taste… not terrible? Well, buckle up buttercup, because their stock just went on the wildest ride since that time your cousin tried day trading crypto.
We’re talking about a 1,200% surge in one week. Yes, you read that right. Twelve. Hundred. Percent. The stock went from 67 cents (basically pocket change) to $8.70 per share faster than you can say “plant-based protein.”
What the Heck Happened?
This is what Wall Street nerds call a “short squeeze,” but let me break it down in human terms. Imagine everyone at school is betting that the weird kid will fail the math test. Then the weird kid aces it, and suddenly everyone who made those bets has to pay up all at once. Chaos ensues.
Beyond Meat was basically the weird kid here. The stock had crashed to an all-time low of 55 cents after they had to issue 316 million new shares (translation: they diluted existing shareholders faster than watering down your drink at a sketchy bar). Analysts were giving it the financial equivalent of one-star Yelp reviews, and short sellers were betting big that it would keep tanking.
But then two things happened that changed everything:
First, Walmart decided to expand Beyond Meat’s presence to over 2,000 stores. Because apparently, people really do want their fake meat at America’s favorite retail giant.
Second, Beyond Meat got added to something called the Roundhill MEME Stock ETF. Yes, that’s a real thing – an ETF specifically for meme stocks. We truly live in the weirdest timeline.
The Squeeze is Real
These catalysts triggered what Joseph Saluzzi from Themis Trading perfectly described as something that “takes on a life of its own.” Short sellers started panicking and buying back shares to cover their positions. This pushed the price up, which made more short sellers panic, which pushed the price up more. It’s like financial dominoes, but everyone’s screaming.
Of course, what goes up must come down (thanks, gravity). By Wednesday afternoon, the stock had crashed back to $3.35 – still up 400% for the week, but down from its peak faster than your motivation on a Monday morning.
Should You Jump In?
Hold your horses there, Gordon Gekko. While the Walmart deal is genuinely good news, Beyond Meat is still losing money hand over fist. They posted a $29 million loss last quarter on just $75 million in revenue. That’s like spending $140 to make $100 – not exactly a sustainable business model.
The company does have deals with McDonald’s, Denny’s, and other chains, so they’re not completely hopeless. But this stock moves more erratically than your ex’s mood swings. If you’re thinking about investing, maybe wait for the dust to settle and check out their Q3 earnings on November 4th.
Remember: meme stocks are fun to watch, but they’re about as predictable as the weather. Invest responsibly, folks.