BYND stock warning: how high can investors ‘squeeze’ past meat?

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Beyond the flesh (NASDAQ:BYND) marked one of the hottest initial public offerings (IPOs) in 2019. That year, shares of BYND shares rose sharply to as much as $ 239. From 2018 to 2020, sales of vegetable meat grew three times faster than sales of animal meat. So it seems Beyond should work well, right? Unfortunately, this is not the case. BYND shares are now trading around the $ 65 level, which is more than 70% less than the all-time high.

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Stock BYND is currently the most quarrelsome company v Russell Index 1000. The index follows the top 1,000 companies on the U.S. stock market in terms of market capitalization. As of January 10, short-term interest accounted for 42% of BYND shares traded freely, according to S3 Partners. In addition, short positions in the BYND have increased by 40% since October.

Beyond’s U.S. sales fell nearly 14% in the third quarter. The decline in sales led to a decline demand for counterfeit meat, labor shortages, supply chain problems and weather damage to its manufacturing facility in Pennsylvania. In anticipation of the fourth quarter, investors are also less confident. The counterfeit meat company generated revenue of between $ 85 million and $ 110 million in the fourth quarter. The lower end of this estimate represents a 17% decline compared to the same period last year (YY), and the ceiling estimates an 8% year-on-year increase. These guidelines cover a wide range, indicating that Beyond Meat is unsure of its options. This does not suit investors.

Of course, Beyond worked with yummy! brand (NYSE:YUM) Kentucky Fried Chicken (KFC) recently tested fried plant-based chicken and chicken nuggets. And this is not the first time the two companies have merged. From 2019 to 2020, KFC tested Beyond Meat products at selected locations in Atlanta, Nashville and Charlotte. In Atlanta, the fried Beyond Meat chicken is “sold out in less than five hours”.

Stock BYND: Is Beyond Meat Environmentally Sustainable?

Fans of environmental, social and management investment (ESG) can afford a bone at Beyond. why Because Beyond Meat and rival Impossible food to have yet to prove that they produce lower emissions than their traditional meat counterparts. In addition, Beyond burgers contain five times more sodium than regular beef burgers. This doesn’t look exactly like a healthy alternative.

Roxana Dobre, Head of Consumer Goods Research at ESG Permanent cliff, added the following:

“The problem with plant products in general is that while they may be fixing one problem, they are fighting the fact that meat production is very carbon intensive and emits a lot of carbon dioxide, depending on the ingredients and where they come from. , we could still be involved in deforestation problems. “

It is clear that BYND shares have some problems that need to be resolved further.

At the date of publication, Eddie Pan did not have (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.

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