Meatless Burger Pwns Food Market

Beyond Meat

A maker of vegetable hamburgers has seen its stock continue to rally in recent trading sessions, while investors who bought in on the ground floor now have more than double their value in its stock.

Beyond Meat makes a new kind of meatless food products – innovating on the vanguard of making meatless options taste, look and feel more like ground beef or other traditional meats.

It’s a play that’s deliberate and very much a part of today’s specialty markets.

The meat industry has been under heavy fire for years, as the medical world comes out with new red meat health risks, documentaries look into slaughterhouse conditions, and ecological and economic experts talk about the long-term effects of buying meat (spoiler alert: it wastes water and contributes to global warming.)

That’s part of what’s driving Beyond Meat’s stock price.

Today Tomi Kilgore of MarketWatch tells a story of some up-and-down movement around the plant food maker’s stock activity.

Shares of Beyond Meat Inc. BYND, -0.64% shot above the $200 mark for the first time in early trading Tuesday, before paring some gains, as the maker of plant-based meat alternative extended its rocket ride since going public about seven weeks ago,” Kilgore writes. “The stock was up as much as 19% at its intraday high of $201.88, but was recently up 9.7% at $186.47, which was more than 7-times the $25 IPO price, as bearish investors have been forced to flee despite some concerns over competition.”

Some are bullish about the long-term prospects for these kinds of stocks – and not for the usual reasons!

“Beyond Meat is booming in the U.S., which has the highest level of animal-based meat consumption per person on a global basis and where meat is the largest category in the food industry, a $270 billion business. …But the company has said that the global opportunity is just as compelling — meat is estimated to be a $1.4 trillion market — and that is where some of Beyond Meat’s fastest growth may yet come,” writes Eric Rosenbaum at CNBC June 7.

Rosenbaum quotes CFO Mark Nelson:

“Asia has a desperate need for this. So I’m going to be very aggressive in going into those markets, and our team will be as well. … Asia is absolutely a strong part of our strategy.”

Could an intercontinental hunger continue to drive BYND into the stratosphere? Tell us if you are putting your money where beef used to be.