Why Beyond Meat Stock Sank 24.5% in December

Stock Performance - Beyond Meat shares fell 24.5% in December, contributing to a 98% decline from its all-time highs [1] - The stock is heavily shorted, with an estimated short interest of close to 50% [4] Financial Performance - Revenue reached $450 million in 2022 but has since shrunk due to fading hype and backlash against its ingredients list [2] - Revenue was up slightly last quarter but remains significantly down compared to its all-time high [3] - The company has never generated a profit and continues to burn over$100 million in free cash flow annually [3][5] - Gross margin is weak at just 17.7% [5] Market Position and Challenges - Beyond Meat aimed to persuade meat eaters to switch to plant-based alternatives but has struggled as interest in plant-based meat wanes [2][4] - The company has made some progress in reducing losses but still faces stagnating revenue and negative free cash flow [3][5] Investment Outlook - Despite being a leading brand in its space with a market cap of $250 million, the company's inability to generate profit and weak growth prospects make a turnaround unlikely [5][6] - The stock is not recommended for investment due to its persistent losses and lack of value generation for shareholders [6]