BYND Stock’s Wild Ride: Why Beyond Meat Just Doubled — Then Dropped 10% the Same Week

Watching BYND stock trade at the moment has an almost theatrical quality. Riding a retail-trader frenzy and a new distribution deal, Monday ended at 1.16, up 41% for the day. Tuesday began 20% higher. The stock had dropped by almost 10% to 1.04 by the closing bell. It dropped a few more pennies over night. Beyond Meat was able to feel like both a cautionary tale and a comeback story in just 48 hours, which is an odd place for any business to be.

The spark was genuine enough. In order to expand its new Beyond Immerse protein water line into over 26,000 retail locations, Beyond Meat entered into a distribution agreement with Big Geyser, a New York beverage distributor. Additionally, avocado-oil breakfast sausages are being introduced nationwide and will be available at Whole Foods, Sprouts, and Kroger. With short interest already at historically high levels and Stocktwits chatter up more than 1,840% in a single day, Monday’s rally appeared to be a proper short squeeze. Low float energy, a discounted price, and a novel story were all present for a traditional meme run.

This is where things get complicated, though. Revenue for Beyond Meat’s most recent quarter was $61.59 million, a decrease of about 20% from the previous year. The stock is down 99% from its peak period, and the five-year chart is harsh. According to certain metrics, long-term debt is approximately $400 million, with negative shareholder equity. The majority of insiders have been selling. Additionally, Barchart reports that the consensus Wall Street price target is roughly 66 cents, which would represent a further decline of at least 40% from present levels. The Big Geyser deal might actually have an impact on revenue. Another possibility is that there isn’t enough customer demand to support the distribution footprint.

It’s difficult to ignore Beyond Meat’s past as you watch this play out. The 2019 IPO was truly thrilling. In just a few weeks, the stock increased from 25 to over 230. The Impossible Whopper was being introduced by Burger King. Test programs were being run by McDonald’s. Beyond Meat was at the epicenter of a cultural moment. Subsequently, consumers quietly returned to real beef as the trend softened and alternative proteins became more costly due to inflation. The category simply ceased to be the story, rather than completely collapsing.

However, the beverage pivot is intriguing. Protein water is a legitimate market that is expanding quickly and has margins that, in contrast, make packaged meat appear thin. Beyond Immerse places the business in a different category and in a different shopper’s mind. Additionally, Beyond Burger and Beyond Steak have been certified to have at least 50% lower greenhouse gas emissions than beef through early 2027. Even if it doesn’t reverse the revenue trend on its own, that is a marketing asset.

There is a perception that BYND is currently more of a trade than an investment. There’s no chasing professional money. It’s retail money. The stock is torn between the raw hope that Ethan Brown can create another chapter and the threat of delisting because Nasdaq still wants shares to consistently trade above $1. On May 6, Q1 earnings were released. What transpires in the interim will likely have more to do with momentum traders’ continued interest than protein water. It’s still unclear if Beyond Meat will continue to be a publicly traded company in this day and age or if it will quietly disappear into a different kind of narrative.