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…
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Stock Market Live October 22: S&P 500 (SPY) Little Changed After Another Record Session
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Newest firstMore Meme Stocks are Exploding with BYND
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.
Beyond Meat Up Another 90%
Shares of Beyond Meat (BYND) continue to rocket higher.
Last trading at $6.84, it’s up 90% on the day on a volume spike to 834 million, as compared to daily average volume of 69.7 million.
All thanks to short covering, a recently expanded agreement with Walmart, and its addition to the Roundhill Meme Stock ETF.
However, while exciting to watch, this may not end well.
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.
Amazon Upgraded Again Ahead of Earnings
Bank of America analysts also reiterated a buy rating on Amazon (NASDAQ: AMZN) ahead of earnings later this month. The firm says AMZN is an e-commerce and cloud computing leader with market share and higher margin potential from tech platform investments.
According to analysts at Wedbush. AMZN saw robust demand from the enterprise for its artificial intelligence and cloud computing services.
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The story so farAfter a record session for the Dow, markets are little changed.
At the moment, the Dow is down about five points. The S&P 500 is up about four, with the NASDAQ down about 36 points.
Not helping, Netflix (NASDAQ: NFLX | NFLX Price Prediction) slumped after posting an earnings miss. Its EPS of $5.87 was below expectations for $6.97, thanks to a dispute with Brazilian tax authorities. Revenue of $11.51 billion was in line, though.
Moving forward, Tesla (NASDAQ: TSLA) will post earnings after the bell. We’ll also see more highly-awaited reports from Magnificent 7 mega-cap stocks.
Pressuring Markets, There’s Uncertainty if Trump Will Meet with Xi Jinping
Weighing on markets, there’s uncertainty on a much-hoped-for meeting between President Trump and Chinese President Xi Jinping in two weeks.
As he recently said at the White House, “I think we’re going to have a very successful meeting. Certainly, there are a lot of people that are waiting for it. Maybe it won’t happen. Maybe it won’t happen. Things can happen where, for instance, maybe somebody will say, ‘I don’t want to meet, it’s too nasty.’ But it’s really not nasty, it’s just business.”
Unfortunately, that’s prompting uncertainty over trade tensions that some fear could lead to higher tariffs and a longer-than-expected trade war.
Meme Stocks, Like Beyond Meat, are Exploding Again
Over the last few days, shares of Beyond Meat (NASDAQ: BYND) exploded from a low of about 50 cents to $3.62. In premarket, BYND is up to $7.23 and climbing.
Not only is it rocketing on massive short covering, but also on news of an expanded partnership with Walmart (NYSE: WMT). BYND was also added to the Roundhill Meme Stock ETF (NYSEARCA: MEME). While exciting to watch, this may not end well.
In fact, most meme stock runs have ended poorly. Just look at AMC Entertainment (NYSE: AMC) or GameStop (NYSE: GME), for example.
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.
According to LATimes.com, “The entire U.S. plant-based meat and seafood industry saw a 28% drop in unit sales and an 18% drop in revenue to $1.17 billion over the last two years, according to a report by the Good Food Institute, a nonprofit that advocates for alternative proteins. The downturn also hit markets outside the United States.”
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Ian Cooper
Ian Cooper is a veteran market analyst and investment strategist with more than 20 years of experience covering stocks, commodities, and macro trends. Since 1999, he has helped investors identify market opportunities using a blend of technical analysis, fundamental research, and market sentiment.
He is the creator of the ADD News Flow Strategy, which focuses on trading market reactions to major news events and investor psychology. Cooper was also among the analysts who warned about the 2008 financial crisis and major financial institution collapses ahead of the broader market.
Before joining 247 Wall St., Cooper wrote extensively for InvestorPlace and other financial publications, covering market trends, trading strategies, and investment opportunities.
