Beyond Meat's Rally Hits 1,000%—Here's What's Behind The Surge

Core Viewpoint - Beyond Meat's stock has experienced a significant rally, surging over 1,000% since hitting an all-time low last week, attracting attention as a potential meme asset on Wall Street [1][2]. Group 1: Stock Performance - Shares of Beyond Meat rose 63% to approximately $5.80 shortly after trading opened on Wednesday, continuing a rally that began on October 17 and reaching an intraday high for the year [1]. - The stock hit an all-time intraday low of $0.50 on October 16, marking a 75% decline for the week following a debt swap announcement that would dilute shareholders [2]. - As of Wednesday's trading, Beyond Meat's shares have surged 1,096% since the intraday low [2]. Group 2: Influencing Factors - A trader named Demitri Semenikhin promoted Beyond Meat's stock on Reddit after acquiring a 4% stake, expressing optimism about the company's debt restructuring, which he claimed reduced bankruptcy risk and strengthened the balance sheet [3]. - The stock rallied 127% on Monday after being added to the Roundhill Meme Stock ETF, which includes other meme stocks [3]. - Beyond Meat announced a distribution deal with Walmart, expanding product availability to over 2,000 stores nationwide, contributing to a further 146.2% increase in stock price [3]. Group 3: Historical Context - Beyond Meat's all-time high share price was $234.90 on July 26, 2019, representing a 97% decline from its current price [4]. - The company gained popularity during the pandemic as a healthier alternative to meat, but consumer demand has since declined, with sales down 20% last quarter and shares plummeting over 70% this year [5]. - Other plant-based meat companies have also faced declines in demand, including Unreal Food and Sun Milk, among others [5].