Retail Traders Send Beyond Meat Up Another 90% Today

Beyond Meat (NASDAQ: BYND) is up another 90% to $6.80 on a volume spike to 1.02 billion shares, as compared to its daily average volume of 69.7 million. All thanks to short covering, its latest expanded partnership with Walmart, and its addition to the Roundhill Meme Stock ETF.

But again, be careful if you jump on the meme stock.

With BYND, despite the run, the company is still a fundamental mess. It just posted a 20% year-over-year revenue decline, which missed by 9%. Net revenues are still falling. It’s still wildly unprofitable, with losses posted for many of the last few earnings reports.

And unfortunately, the alternative meat sector isn’t so hot, with the U.S. plant-based meat and seafood industry seeing a 28% drop in unit sales and an 18% drop in revenue over the last two years, as noted by the Good Food Institute.

As even Barron’s just said, “Beyond may be in the spotlight for now, but this doesn’t improve the company’s shoddy fundamentals. The maker of plant-based meat alternatives continues to struggle with falling revenue and the same issues that have caused the stock to steadily decline since 2021. So, renewed enthusiasm is lifting shares higher for now. But that doesn’t mean it will last, nor does it mean Beyond will become a success story.”

Meme Stock Rallies Don’t Often End Well 

Just years ago, GameStop (NYSE: GME), AMC (NYSE: AMC), and Bed Bath & Beyond exploded thanks to WallStreetBets on Reddit. Even Kohl’s (NYSE: KSS) ran from a low of $10.52 to a high of $19.53 as it got caught up in the meme wave.

Unfortunately, like other beaten-down stocks suddenly embraced by retail investors, Kohl’s benefited from the incredible buzz in communities like WallStreetBets, which targets highly shorted, and oftentimes, hated stocks.

However, after each of those stocks exploded, they collapsed.

Aside from those and BYND, meme stocks, like Krispy Kreme (NASDAQ: DNUT), are rallying on a volume spike to 105 million, as compared to its daily average volume of 7.7 million. Even GoPro (NASDAQ: GPRO) is surging on a volume spike to 26.6 million, as compared to its daily average volume of 13.8 million.

As exciting as these are, if you jump into meme stocks, be cautious.

Sure, it’s tough to ignore the dramatic runs with these meme stocks. But you also need to know how dangerous they can be. We’ve seen the bottom fall out on most of these meme stocks.

And, again, as exciting as Beyond Meat appears to be right now, it probably won’t end well.