'Symbol of rebellion': Beyond Meat stock rockets 466% in two days

Shares of Beyond Meat, a small-cap producer of plant-based meat backed by Leonardo DiCaprio and Bill Gates, soared 466% across the first two sessions this week and more than doubled in premarket trading today, October 22. Investors have latched onto two catalysts. First, its stock was added to Roundhill’s Meme Stock ETF, then the company announced plans to expand distribution with Walmart, the largest U.S. retailer. Before the rebound, Beyond Meat had set multiple all-time lows.

Shares of financially pressured Beyond Meat jumped roughly 463% on Monday, October 20, and yesterday, Tuesday, 21. The stock closed at $3.62 per share.

On Monday, the shares surged nearly 130% after Roundhill Investments added Beyond Meat to the Roundhill Meme Stock ETF. The move helped trigger a short squeeze as bearish investors rushed to cover positions. More than 63% of the free float was sold short, according to FactSet data cited by CNBC.

The rally extended yesterday, with the stock up another 146% in its best day on record, CNBC reported, after the company said it would expand its Walmart partnership. The plan includes placing three additional Beyond products on Walmart shelves nationwide.

In premarket trading today, the stock price has roughly doubled again as of this writing.

In recent weeks, shares repeatedly notched fresh lows on adverse news.

In late September, the company launched a swap offer for its convertible notes to reduce leverage, which also raised the risk of shareholder dilution. Bloomberg noted the proposal came as Beyond Meat, a once-promising start-up, contends with weakening U.S. demand for plant-based substitutes. For the second quarter, net revenue fell nearly 20% year over year to $75 million.

A second slide hit on October 13, when the company said creditors had agreed to the swap, sending the stock down 48% in a single day to $1.03 per share.

Barron’s flagged a groundswell on social media, with one Reddit post on October 14 urging traders to “make $BYND great again” and arguing the stock “deserves a squeeze.” Eric Jackson, a prominent figure in past meme surges, wrote on X on October 18, "I’m getting flooded by people wanting me to take a position in BYND the last few days: is this some bot campaign?"

That same day, Reddit posts rallied a “retail army,” likening the momentum to prior runs in GameStop and AMC. "This isn’t just a veggie burger anymore, it’s a symbol of rebellion... It’s a company that Wall Street gave up on and now it’s us, the people, who decide its value.”

CNBC compared this week’s spike to earlier meme-era bursts, when retail traders piled in based on sentiment more than fundamentals, and cautioned the move could be the "latest sign of a frothy market, as investors pile into more speculative names in spite of elevated valuations, and possibly a signal of a market top.”

Despite the squeeze, Wall Street remains cautious, according to MarketWatch. Beyond Meat carries five “sell” ratings and three “hold” ratings, with the average target price of $2.33 per share below the latest quotes.

The AI translation of this story was reviewed by a human editor.