3 Reasons to Sell Beyond Meat Stock
In business, it's often said you are either growing or dying. And this idiom seems to be playing out for Beyond Meat (NASDAQ: BYND). Shares in the plant-based meat producer have collapsed 61% in the last 12 months as the company's growth story turns in reverse. The downside looks likely to continue because of its astronomical cash burn.
Founded in 2009 and going public a decade later, Beyond Meat is a plant-based meat provider that aims to "create nutritious plant-based meats that taste delicious and deliver a consumer experience indistinguishable from that provided by animal-based meats." For investors, the underlying assumption may have been that as a well-capitalized public company, its R&D budget could help it succeed where all others failed. But while this may have sounded good in theory, it has fallen flat in practice.
While taste is subjective, I personally do not see Beyond Meat's products as reasonable imitations of real meat in taste or smell. Further, the company's products are not well differentiated from its biggest rival, Impossible Foods, or the more than 60 other plant-based meat companies with over $500,000 in sales, according to data from The Washington Post.
Source Fool.com
