This is Why Shares of Beyond Meat are Getting Crushed

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FILE PHOTO: Products from Beyond Meat Inc, the vegan burger maker, are shown for sale at a market in Encinitas, California

The plant based story is booming.

So much so, the market could be worth up to $74.2 billion by 2027, according to Research and Markets.  By 2030, according to Fortune, sales are expected to increase five-fold by 2030.  All as millions adopt healthier, meat-free lifestyles.

Unfortunately, Beyond Meat is being left behind.

After testing a high of $221 in early 2021, the BYND stock now trades at $79.67 – with no real support until sub-60. Not helping, the company just posted worse than expected earnings thanks to the coronavirus, labor shortages, and shipping delays.

In its latest quarter, Beyond Meat posted a net loss of $54.8 million, or 87 cents a share, as compared to a net loss of $19.3 million, or 31 cents a share last year.  Adjusted for one-time losses, the company posted a net loss of $36.8 million.  Revenue was up 13% to $106.4 million from $94.4 million year over year.

Analysts were looking for a loss of 37 cents on $109.2 million in sales.

Arun Sundaram, analyst at CFRA Research, as quoted by Barron’s said Beyond stock is still a Hold. “We’ll update our estimates and target price following today’s earnings call, but needless to say, this is going to be one of those quarters BYND will want to erase from its memory. Unfortunately, it seems like many of these issues will persist through at least 4Q.”

Even Bernstein analyst, Alexia Howard is telling investors not to buy the dip, and lowering the firm’s price target from $130 to $100.  Also according to TheFly.com, “The company is likely to face ongoing margin pressure from labor and supply chain issues as well as escalating pea protein costs when contracts roll over. While the ‘robust growth’ in International markets is encouraging, Beyond Meat’s expected recovery of momentum in the U.S. retail and foodservice channels remains uncertain.”

In short, stay away.  Wait to see if BYND can find support somewhere.