Beyond Meat, Inc.Short
$BYND Meatless Momentum
As things stand Beyond Meat, Inc. (NASDAQ: BYND) is on many investors’ radars due to its short squeeze potential. That said, a short squeeze may be unlikely due to two overarching reasons. The first is simply that the stock lacks a catalyst and the second is waning interest in vegan meat. If BYND remains in its current trajectory then it is highly likely that the stock will fall substantially – which could make BYND stock a profitable short play.
BYND Fundamentals
Short Data
Investors are eyeing BYND stock because of its growing short data as it has a short interest rate of 44.4% and 48% of its float on loan. At the same time, the stock has a utilization rate of 100% and a high cost to borrow at 146%. These indicators are like hay bales awaiting a spark to ignite into a roaring short squeeze.
However, this high short data may be justified as a result of the waning demand for BYND’s products and the lack of a catalyst that would rally investors behind BYND stock. As is, BYND is an unprofitable business with a high cash burn which could indicate that BYND remains overvalued despite trading near its all-time low.
Pandemic High & Post Pandemic Fall
During the pandemic, BYND stock skyrocketed as the company’s revenues rose up to $464.7 million in 2021 amidst increased consumer curiosity. BYND acquired celebrity status, and as a result, enjoyed massive investments by some of the largest food and meat companies like Nestle, Tysons, Perdue, Smith Field, and Hormel.
After the pandemic things started to slow down with BYND’s revenues falling to $418.9 million in 2022. In Q1 2023, BYND’s revenues continued their decline as the company reported a 15.7% drop YoY due to lower than expected demand for plant-based meat substitutes. In response to this dwindling demand, BYND stock dropped from its pandemic high of $224 to its current levels near all-time lows.
In a sense, BYND’s meteoric rise was a double-edged sword since its increasing revenues allowed it to expand to meet demand, however, since that demand decreased drastically its enormity is holding it back as expenses chip away at the company’s chances of survival.
As is, the only path to salvation for BYND is rightsizing, which would entail cutting production, its workforce, and restructuring its business. In a sense, rightsizing is an admission of waning revenues which is why BYND is in a precarious situation. Even if by some miracle it reaches profitability due to rightsizing, the stock is still likely to fall due to decreasing revenues and demand.
BYND Financials
According to BYND’s Q1 2023 report, assets decreased QoQ from $109.4 million to $92.2 million which was mostly due to its cash balance declining from $309.9 million to $258.5 million. That said, its liabilities also decreased QoQ from $1.18 billion to $1.17 billion
BYND’s revenues drastically decreased YoY from $109 million to $92 million. However, it is important to note that its cost of operations declined sharply YoY from $97.8 million to $63.9 million which resulted in the net loss markedly decreasing from $100.4 million to $59 million. With this in mind, BYND’s waning expenses and net loss are possible indicators of rightsizing.
Technical Analysis
BYND stock is in a neutral trend and is trading in a sideways channel between its support at $11.54 and its resistance at $13.25. Looking at its indicators, the stock is testing its 21 MA support while trading above its 200 and 50 MA. The RSI is neutral at 57 and the MACD is curling bullishly.
As for its fundamentals, BYND is experiencing a sharp decline in revenues due to a lack of demand. Keeping that in mind a possible play could be to go short on retests of the $13.25 resistance in anticipation of its Q2 earnings.
BYND Forecast
There are currently many investors waiting for a BYND stock short squeeze which may be unlikely due to the absence of a catalyst. That said, BYND is experiencing a major setback in the form of waning demand. Ever Since the end of the pandemic, BYND’s revenues plummeted resulting in the stock plunging to its current PPS. As is, BYND’s revenues show no sign of stabilizing anytime soon which is why the stock might plummet further and reach a new low.
BYND Fundamentals
Short Data
Investors are eyeing BYND stock because of its growing short data as it has a short interest rate of 44.4% and 48% of its float on loan. At the same time, the stock has a utilization rate of 100% and a high cost to borrow at 146%. These indicators are like hay bales awaiting a spark to ignite into a roaring short squeeze.
However, this high short data may be justified as a result of the waning demand for BYND’s products and the lack of a catalyst that would rally investors behind BYND stock. As is, BYND is an unprofitable business with a high cash burn which could indicate that BYND remains overvalued despite trading near its all-time low.
Pandemic High & Post Pandemic Fall
During the pandemic, BYND stock skyrocketed as the company’s revenues rose up to $464.7 million in 2021 amidst increased consumer curiosity. BYND acquired celebrity status, and as a result, enjoyed massive investments by some of the largest food and meat companies like Nestle, Tysons, Perdue, Smith Field, and Hormel.
After the pandemic things started to slow down with BYND’s revenues falling to $418.9 million in 2022. In Q1 2023, BYND’s revenues continued their decline as the company reported a 15.7% drop YoY due to lower than expected demand for plant-based meat substitutes. In response to this dwindling demand, BYND stock dropped from its pandemic high of $224 to its current levels near all-time lows.
In a sense, BYND’s meteoric rise was a double-edged sword since its increasing revenues allowed it to expand to meet demand, however, since that demand decreased drastically its enormity is holding it back as expenses chip away at the company’s chances of survival.
As is, the only path to salvation for BYND is rightsizing, which would entail cutting production, its workforce, and restructuring its business. In a sense, rightsizing is an admission of waning revenues which is why BYND is in a precarious situation. Even if by some miracle it reaches profitability due to rightsizing, the stock is still likely to fall due to decreasing revenues and demand.
BYND Financials
According to BYND’s Q1 2023 report, assets decreased QoQ from $109.4 million to $92.2 million which was mostly due to its cash balance declining from $309.9 million to $258.5 million. That said, its liabilities also decreased QoQ from $1.18 billion to $1.17 billion
BYND’s revenues drastically decreased YoY from $109 million to $92 million. However, it is important to note that its cost of operations declined sharply YoY from $97.8 million to $63.9 million which resulted in the net loss markedly decreasing from $100.4 million to $59 million. With this in mind, BYND’s waning expenses and net loss are possible indicators of rightsizing.
Technical Analysis
BYND stock is in a neutral trend and is trading in a sideways channel between its support at $11.54 and its resistance at $13.25. Looking at its indicators, the stock is testing its 21 MA support while trading above its 200 and 50 MA. The RSI is neutral at 57 and the MACD is curling bullishly.
As for its fundamentals, BYND is experiencing a sharp decline in revenues due to a lack of demand. Keeping that in mind a possible play could be to go short on retests of the $13.25 resistance in anticipation of its Q2 earnings.
BYND Forecast
There are currently many investors waiting for a BYND stock short squeeze which may be unlikely due to the absence of a catalyst. That said, BYND is experiencing a major setback in the form of waning demand. Ever Since the end of the pandemic, BYND’s revenues plummeted resulting in the stock plunging to its current PPS. As is, BYND’s revenues show no sign of stabilizing anytime soon which is why the stock might plummet further and reach a new low.
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