Beyond Meat: Buy, Sell, or Hold?
Beyond Meat (NASDAQ: BYND) makes plant-based meat substitutes. There was a lot of excitement when the company's products first hit the market, but the hype has died down in recent years.
Valued at over $14 billion within a few months of its 2019 IPO, Beyond Meat has seen its stock decline 96% from that peak. After such a big price drop, contrarian investors may be wondering if the stock is worth buying. Here's why you should tread carefully.
One of the first reasons to stay away from Beyond Meat, or to sell it, is that the company isn't profitable. In fact, its bottom line was positive in early 2020, but it has been getting worse, not better. That said, results in 2023 have begun to show an improvement with net losses in the third-quarter shrinking to $70.5 from $101.7 million in the prior-year period. With a net margin of negative 94%, however, the company has a long way to go.
Source Fool.com
