The initial spark came when Walmart announced plans to expand Beyond Meat’s product range to more than 2,000 stores across the US. The company said its chicken pieces, Korean BBQ-style steak, and burger six-packs would now be available at more outlets. The surge gained further traction after Roundhill Investments added Beyond Meat shares to its Roundhill Meme Stock ETF, giving retail traders another reason to pile in.
The dramatic spike sent short sellers into a frenzy—some rushed to cover their positions to avoid further losses, while others doubled down, Bloomberg reported. By Wednesday, the stock had swung sharply, jumping as much as 112% during the day before ending 1.1% lower. The selloff continued after hours, with shares sliding 20% to $2.86 as of 4:27 PM in New York.
Once a stock market favourite following its 2019 Nasdaq debut, Beyond Meat has seen its fortunes fade in recent years. The El Segundo, California-based company has been struggling with weak demand for its plant-based products, leading to job cuts and efforts to manage its debt. Net revenue fell 15% in the first six months of this year.
Last week, Beyond Meat’s stock had dropped after the expiration of lock-up restrictions on some of its 326 million new shares, part of a broader plan to cut debt and extend repayment timelines. The end of the lock-up period freed shareholders to sell, adding to the volatility that meme-stock traders have now amplified.
Also read: Epack Prefab Technologies shares zoom 20% to new 52-week high as Q2 PAT spikes over 100%A meme stock is the stock of a company that experiences significant price movements driven by viral hype on social media, rather than by the company’s actual financial performance. They are typically associated with high volatility and speculative trading.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)