Topline<\/p>\n
A dayslong rally continued Wednesday for Beyond Meat, whose shares have jumped more than 1,000% since hitting a new low last week, as traders flocked to the plant-based meat distributor\u2019s stock as the next meme asset. <\/p>\n
Wall Street previously forecast the plant-based meat firm as a \u201cReddit stock to watch.\u201d <\/p>\n
Getty ImagesKey Facts<\/p>\n
Shares of Beyond Meat surged 63% to around $5.80 shortly after trading opened Wednesday, adding to a rally that began Oct. 17 and setting an intraday high for the year so far.<\/p>\n
Beyond Meat\u2019s stock hit an all-time intraday low of $0.50 on Oct. 16, capping what was a 75% decline on the week after the company announced<\/a> its creditors had accepted a debt swap that would substantially dilute shareholders. <\/p>\n While it\u2019s unclear why the stock rebounded roughly 24% last Friday, Beyond Meat\u2019s shares have surged 1,096% as of Wednesday\u2019s trading price since hitting an intraday low.<\/p>\n Why Are Beyond Meat\u2019s Shares Exploding?<\/p>\n After a slight boost on Oct. 17, Business Insider reported<\/a> Monday on a trader named Demitri Semenikhin, who had been pushing Beyond Meat\u2019s stock on Reddit after announcing he\u2019d acquired a 4% stake. Semenikhin was bullish on Beyond Meat\u2019s debt movement, suggesting in a YouTube video<\/a> under the name \u201cCabybara Stocks\u201d the move had \u201c[removed] its previously high risk of bankruptcy and greatly [strengthened] its balance sheet.\u201d Beyond Meat\u2019s shares rallied 127% on Monday and continued rising after the bell, after Roundhill Investment announced<\/a> Beyond Meat as its latest addition to its Roundhill Meme Stock ETF, which features<\/a> positions for Opendoor, USA Rare Earth, Hims and Oklo, among others. The stock\u2019s rally continued Tuesday, rising another 146.2%, as Beyond Meat announced a distribution deal<\/a> with Walmart while expanding its product availability to more than 2,000 stores nationwide. <\/p>\n Big Number<\/p>\n $234.90. That\u2019s Beyond Meat\u2019s all-time high record share price set on July 26, 2019, a far cry\u2014representing a 97% decline\u2014from the stock\u2019s current price.<\/p>\n Key Background<\/p>\n Beyond Meat emerged during the pandemic as a healthier alternative, with more people opting for plant-based protein over meat. Consumer demand has declined in recent years, with sales down 20% last quarter, as shares have plummeted by more than 70% on the year. Other plant-based meat firms have dropped as demand softened, including Unreal Food, Sun Milk, Noops and OceanTastes, among others. Beyond Meat, whose IPO came in 2019, quickly became a penny stock after trading around $230 during its peak, though it was briefly heralded by Bank of America analysts in 2021 among its \u201cReddit stock to watch\u201d watchlist before it ended the same year down more than 47%.<\/p>\n Further Reading<\/p>\n