Don't Be Fooled by Beyond Meat's Surging Stock Price
Based on how shares of Beyond Meat (NASDAQ: BYND) reacted to its third-quarter earnings report, you'd think the plant-based "meat" company hit it out of the park. The stock surged more than 20% in the two days following that Nov. 9 report.
Beyond Meat did not hit it out of the park. To put it plainly, the third-quarter report was a catastrophe. Demand for plant-based meat, and specifically Beyond Meat's products, is plunging as consumers abandon the pricey meat alternatives. At the same time, Beyond Meat's costs are out of control. Gross margin is deeply negative, and multiple rounds of layoffs will only go so far in bringing down operating expenses.
Beyond Meat is a company in distress. Unless you're willing to bet on an unlikely comeback, stay away from the stock.
Source Fool.com
