Should You Invest in Beyond Meat Stock?

• Beyond Meat banal has plunged 98% since its 2019 IPO.

• A meme banal rally concisely pushed the stock terms astir 1,400% higher successful October.

• Beyond Meat is grappling with anemic user request and superior operational challenges.

• 10 stocks we similar amended than Beyond Meat ›

Shares of Beyond Meat (NASDAQ: BYND) are up 22% implicit the past week, arsenic of Dec. 4. The rally doesn't look to beryllium connected to immoderate company-specific news, and it comes during a choppy agelong for the wide market.

For context, Beyond Meat has been a horrendous semipermanent investment. The stock terms has plummeted 98% since the company's IPO successful May 2019, and it's down 67% twelvemonth to date, adjacent with the caller surge. But meme banal traders fueled a rally successful precocious October that concisely lifted the banal 1,400% higher. Was that a awesome that much upside is connected the way, oregon should investors debar this banal astatine each costs?

Beyond Meat's third-quarter nett gross dropped 13% to $70.2 million, which the institution attributed to "weak class demand," shrinking U.S. retail distribution, and little income to fast-food restaurants successful planetary markets. Beyond Meat said it expects Q4 gross of $60 cardinal to $65 million, which would beryllium a 15% year-over-year diminution astatine the precocious extremity of the guidance.

As you tin spot successful the illustration below, the declining income are an hold of a troubling multiyear trend:

Beyond Meat ended the 3rd 4th with $1.3 cardinal successful semipermanent liabilities. The institution subsequently refinanced astir $900 cardinal of that debt, issuing 318 cardinal shares of communal banal to bondholders who chose to person their bonds to shares.

But that's a driblet successful the bucket compared to a precocious approved charter amendment that increases the fig of authorized shares from 500 cardinal to 3 billion. As the illustration illustrates, stock dilution is simply a precise existent concern:

Beyond Meat is successful turnaround mode, and the institution is scrambling to rebuild its organisation network, chopped costs, and grow its merchandise lines. But successful my opinion, these charts are glaring reddish flags that this banal is simply a high-risk stake for speculative traders, not a superior investment.

Before you bargain banal successful Beyond Meat, see this:

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