Four years after Reddit investors successfully boosted GameStop stock, they're now aiming for a similar outcome with Beyond Meat. This plant-based meat company, often overlooked for more affordable options, is currently the subject of a social media-fueled short squeeze. This phenomenon has propelled its stock price by ~250% this week, coinciding with the announcement of a broader distribution agreement with Walmart.
TL;DR
- Reddit investors are targeting Beyond Meat for a social media-fueled short squeeze, similar to GameStop.
- Beyond Meat's stock price surged approximately 250% this week.
- The surge coincided with a new distribution agreement with Walmart.
- A social media influencer acquired 4% of Beyond Meat's shares, fueling the stock's rise.
Dimitri Semenikhin, a Dubai-based real estate developer known as Capybara Stocks on social media, fueled the stock's surge. Although his initial Reddit post promoting Beyond Meat was taken down, he informed Business Insider that he acquired 4% of the company's shares and determined that its latest debt agreement might signal more positively than many anticipated.
- Beyond concluded a convertible debt swap last week, which increased its share count fourfold, leading to a substantial decline in its share price from slightly over $2 to approximately 50 cents.
- The stock closed at $3.62 per share yesterday.
Big picture: The surge followed years of Beyond's declining momentum. The firm spearheaded a plant-based protein movement leading up to its 2019 initial public offering, boasting a $230 share price, after which the entire market appeared to stagnate as shoppers lost their taste for meat substitutes.—MM
This report was originally published by Morning Brew.