Another meme rally boosted the stock.
Shares of Beyond Meat (BYND 0.96%) were moving higher this week as a meme-stock rally seemed to return in the stock, with traders calling for a short squeeze.
That was enough to engineer a pop in the stock on Wednesday, and as of Thursday’s close, the stock was up 17% for the week, according to S&P Global Market Intelligence.
Image source: Beyond Meat.
What happened with Beyond Meat
Beyond Meat stock soared back in October as a group of traders on social media stock briefly sent the stock up more than 1,000% seemingly on a short squeeze, and this week’s price action seemed to resemble that.
The stock jumped 11% yesterday on high volume after gaining on Tuesday as well.
Yesterday’s rally seemed to begin with a trader on X posting that they had bought 1.5 million shares of the stock for a little less than $1.5 million. That seemed to encourage more traders to buy the stock.
Today’s Change
(-0.96%) $-0.01
Current Price
$1.03
Key Data Points
Market Cap
$472M
Day’s Range
$0.97 – $1.08
52wk Range
$0.50 – $7.69
Volume
63M
Avg Vol
213M
Gross Margin
5.98%
What it means for Beyond Meat
Volatility in Beyond Meat stock is likely to continue, as it has become a meme stock, but the underlying business still appears to be struggling.
In the third quarter, revenue fell 13.3% to $70.2 million, and it reported an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss of $21.6 million.
Given that trajectory, this stock still looks best avoided.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Beyond Meat. The Motley Fool has a disclosure policy.
