"But far from any change in the company's financial fundamentals, what seemed to be driving shares higher were short sellers and meme stock enthusiasts. Indeed, Beyond Meat's business has been struggling in recent years as consumers have turned away from plant-based meat alternatives. More recently, Beyond Meat announced that its creditors had agreed to a debt swap, which will result in the issuance of 316 million new BYND shares, thereby diluting existing shares."
"But a struggling company in penny stock territory can be red meat to meme investors. For much of the past week, meme traders on Reddit and elsewhere have been pumping up the stock-and it appears to be working. Yesterday, Beyond Meat shares rose a staggering 146% to close at $3.62 per share. And today in premarket trading, as of the time of this writing, BYND shares are up another 103% to $7.37."
"That puts Beyond Meat shares at a price they have not seen since 2024. It also puts Beyond Meat's shares firmly in the green for this year. The stock began 2025 at around $4 per share, but that price had fallen to as low as 50 cents per share just last week, before meme stock traders decided to take a bite."
Meme stock mania returned this week, sparking dramatic rallies in Beyond Meat and Krispy Kreme. Beyond Meat surged more than 67% in premarket trading, then rose 146% to close at $3.62 and climbed another 103% to $7.37 in premarket trading, reaching prices not seen since 2024. The rally occurred despite deteriorating business fundamentals, falling consumer interest in plant-based meats, and a planned debt swap that will issue 316 million new shares, diluting existing holders. Reddit and other retail traders, along with short covering and inclusion in Roundhill's Meme Stock ETF, helped fuel the spike.
Read at Fast Company
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