Beyond Meat shares surge in meme-stock style rally

Investing.com -- Beyond Meat (NASDAQ: BYND) shares jumped over 100% Wednesday, extending a four-day rally to over 1,400% in a movement reminiscent of past meme-stock frenzies.

The plant-based meat producer’s stock reached as high as $7.69, though it remains more than 95% below its 2019 record high. The shares had closed at just 52 cents last Thursday before beginning their dramatic ascent.

The surge appears partly driven by short-covering, as approximately 81.8% of Beyond Meat’s free-float was sold short according to analytics firm Ortex, up from about 64% at the end of September.

The rally gained additional momentum on Tuesday when Beyond Meat announced Walmart (NYSE: WMT) would expand the availability of its products to more than 2,000 stores. Following this news, the stock soared 146%.

Retail traders purchased nearly $35 million worth of Beyond Meat stock on Tuesday, the largest single-day purchase on record according to Vanda Research data.

Beyond Meat has struggled with declining demand for its plant-based products over the past four years, leading to job cuts and debt management measures. The stock had recently hit an all-time low of 50 cents on October 16 after a notes exchange offer that helped the company avoid near-term default but resulted in significant stock dilution.

Other consumer stocks popular with meme traders are also seeing gains, with Krispy Kreme (NASDAQ: DNUT) shares climbing about 20% on Wednesday.

The current trading activity echoes the Reddit-driven meme stock phenomenon of 2021, when retail investors drove up shares of companies like GameStop and AMC Entertainment.

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