Why Is Beyond Meat Stock Down In Premarket Today?

• Beyond Meat’s shares are heading for a fifth straight session of decline.
• The faux meat producer disclosed preliminary Q3 results last week, with revenue in line with its estimates.
• BYND stock rose by over 175% in just 4 days earlier this month, amid news of an expanded partnership with Walmart and retail enthusiasm for the stock.

Beyond Meat, Inc.’s stock tumbled 2.2% in early premarket trading on Tuesday, after falling for four straight sessions. The company’s preliminary third-quarter results, published on Friday, were seen as soft, contributing to the downward pressure on the stock.

Notably, a very high proportion of holders bet on further downside for the stock. Short interest has remained at 51.6% from mid-October through Monday, though slightly below the 51.8% peak seen in February, according to Koyfin.

However, on Stocktwits, most users maintained an optimistic stance. The sentiment was ‘extremely bullish’ as of early Tuesday, although it climbed a few points lower than the previous day, with ‘extremely high’ message volume for the ticker. 

“$BYND Bought another $145,000 worth today. SUPER BULLISH,” posted one user.”

“Today or tomorrow — could mark the turning point,” said another. 

Over the past month, Beyond Meat’s stock has gone viral after an expanded partnership with Walmart, Inc. sent its shares up 175.6% in just four days. Last week, the stock was included in the Roundhill Meme Stock ETF (MEME).

After a strong 2022 IPO that saw shares peak at $222, the stock has traded below $10 since late 2023, and the company’s annual sales have declined over the past three years as demand for its faux meat waned.

The company said last week that it expects third-quarter revenue of about $70 million, in line with its prior guidance of $68 million to $73 million. It also disclosed a noncash impairment charge tied to some long-lived assets for the three months, which it expects to book in Q3. The company will report on Nov. 4.

Year-to-date, BYND stock is still down 52%.

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