Yesterday’s gains continued, supported by a boost from Walmart.
Why are beef prices soaring?
Beef prices are at an all-time high, and analysts say they’re not going to go down anytime soon.
Fox – 5 Atlanta
Beyond Meat Stock (NASDAQ:BYND) Yesterday’s rally in meme stocks and the short squeeze appears to have continued, with shares rising for the second day in a row after the company announced expanded distribution at Walmart, the nation’s largest retailer.
As of 1:42 p.m. ET, the stock was up 78.5% on unusually high volume. It soared 128% yesterday after last week’s move to convert about $1 billion in convertible debt into equity, making its balance sheet more stable.
Beyond Meat gets shot in the arm again.
In a press release this morning, Beyond Meat said Walmart is increasing the availability of some products in more than 2,000 stores nationwide.
Walmart is also one of the first retailers to offer the new Beyond Burger six-pack, and will also add Beyond Chicken Pieces and Beyond Steak Korean BBQ Style.
Yesterday’s upward short squeeze appears to be continuing after the stock gained attention on platforms like Reddit, as this news is unlikely to cause the stock to nearly double today.
By the afternoon, more than 1 billion shares had been traded, with each stock traded multiple times.
What’s next for Beyond Meat?
No one knows how long this rise will continue. Last week’s debt conversion added significant liquidity to the stock, increasing the number of shares outstanding by nearly five times. Many of these debtors likely sold their stocks because they wanted to get rid of them.
The Walmart news is a positive sign for Beyond Meat, but it won’t be enough to save the company. The company is still in the red and its profits are decreasing. If this continues, the company will eventually go bankrupt and its stock will drop to zero.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns a position in and endorses Beyond Meat. The Motley Fool has a disclosure policy.
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