When Beyond Meat, Inc. (NASDAQ:BYND) went Public on May 2, 2019, many expected it to be a disruptor in the uncharted world of alternative meat. California’s plant-based food-tech company became the first in the world to list in public markets in the alternative meat category.
The enthusiasm saw the stock jump from the IPO offering of $25 to a high of $240 in about three months. Since then, the stock has been oscillating between dips above the IPO price and the previous top. Nonetheless, the stop has been dipping since July 2021, with investors concerned over its ability to deliver to its promised mission.
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Beyond Meat’s fourth-quarter 2021 results revealed why its stock might continue to bleed. The company reported a revenue of $100.7 million in the quarter, 1.2% below the previous year.
The loss also widened to $80.37 million, from $25.1 million in the previous year. As a result, the stock extended declines, falling by 10% after the results. At the current trading of around $44, the stock’s plunge to the IPO level is inevitable.
BYND breaks below key level – Heads to IPO price?
Technically, a break below $71 makes Beyond Meat more vulnerable. Although it is early to speculate if the stock will plunge to the IPO price, weak earnings and skepticism following the Ukrainian crisis expose BYND to lower levels.
Concluding thoughts
Beyond Meat remains vulnerable at the current bottom-low. Weak earnings and the Ukrainian crisis could force the stock to fall to its IPO price. However, Beyond Meat represents a compelling long-term story with its unique offering.
This can, nonetheless, be true if the company manages to capture a market segment that is still oblivious of its unique offering. For now, the stock should be shelved as it does not represent a good buy.
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