TLDR
- Beyond Meat stock jumped 600% over three trading sessions, climbing from an all-time low of 50 cents to $3.62.
- The rally was triggered by addition to the Roundhill Meme Stock ETF and a new distribution deal with 2,000 Walmart stores.
- Retail investors organized a short squeeze campaign on social media platforms, comparing it to GameStop and AMC rallies.
- The company recently completed a debt restructuring that will dilute existing shareholders by issuing up to 326 million new shares.
- Despite the stock surge, Beyond Meat’s second quarter sales fell 19.6% to $75 million with a $34.9 million operating loss.
Beyond Meat stock closed at $3.62 on Tuesday, marking a 146% single-day gain. The three-day rally represented the company’s best performance on record.
Last Thursday, shares hit 50 cents, the lowest price in company history. The drop pushed Beyond Meat below the Nasdaq’s $1 minimum bid price requirement.
The stock needed to stay above $1 for 30 consecutive days to avoid delisting. Instead, it surged nearly 600% over the following three trading sessions.
Wednesday premarket trading showed additional gains of up to 133%. The rapid recovery moved the stock well clear of delisting territory.
Walmart Deal and ETF Addition Spark Interest
Two catalysts drove the initial momentum. On Monday, Beyond Meat was added to the Roundhill Meme Stock ETF, joining names like GameStop and AMC Entertainment.
Tuesday brought news of expanded retail distribution. The company announced its Beyond Burger 6-pack and Beyond Chicken Pieces would launch in 2,000 Walmart locations nationwide.
The announcements came as Beyond Meat’s ticker became one of the most viewed on Yahoo Finance. Trading volume exploded across multiple sessions.
Social Media Campaign Fuels Short Squeeze
Retail investors coordinated buying pressure through Reddit and other platforms. A user posted on October 14 that Beyond Meat “deserves a squeeze.”
Another investor, using the handle Capybara Stocks, shared their position details before being banned from Reddit. The posts gained traction quickly.
Other users called Beyond Meat “a symbol of rebellion” and rallied the “retail army.” They drew comparisons to the 2021 meme stock rallies.
Eric Jackson, known for meme stock activism, noted on X that people were flooding him with requests to take a position in Beyond Meat. The post came as social media momentum peaked.
The surge appears to be a classic short squeeze. Heavily shorted stocks can spike when short sellers rush to cover positions, creating additional upward pressure.
Financial Struggles Continue
The stock rally doesn’t change the company’s financial picture. Beyond Meat was valued at $14 billion after its 2019 IPO but is now worth $1.4 billion.
Second quarter revenue dropped 19.6% year-over-year to $75 million. Operating losses reached $34.9 million for the quarter.
Weak demand hit both retail stores and restaurant partners. Volume declines drove most of the revenue drop.
The company laid off 6% of its workforce in response. This followed two previous rounds of job cuts in 2024.
Last week’s debt swap deal will reduce about $800 million in obligations. Beyond Meat will exchange debt maturing in 2027 for $202.5 million due in 2030.
The restructuring requires issuing up to 326 million shares to bondholders. Existing shareholders will see their stakes diluted.
Jefferies analyst Kaumil Gajrawala said Beyond Meat is “shrinking to survive” and targeting positive EBITDA in the second half of 2026.
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