Beyond Meat Shares Plummeted On Thursday
Nov 11, 2021 By MarketDepth
Beyond Meat (NASDAQ: BYND) shares plummeted 17% during morning trading on Thursday, after Wall Street disclosed concerns regarding the company’s growth prospects. Furthermore, Beyond missed earnings estimates as a result of the ongoing pandemic, labor shortages and shipping delays, according to the company.
“We view the results as further evidence that Beyond’s business is reaching market saturation faster than expected and that the company has deeper problems that won’t be easy to fix.”Credit Suisse analyst Robert Moskow wrote in a note
According to CEO, Ethan Brown, the current issues surrounding the company are mostly short-term.
“I think this is an opportunity for us to continue to lay the core foundation of our future growth,” Brown said in a call with investors Wednesday night. “I think we need to continue to create more data around the points of the benefits of our products.”
Nevertheless, analysts remain cautious. Bernstein analyst Alexa Howard ultimately downgraded the stock, and advised investors not to buy the decline. Maple Leaf Foods CEO Michael McCain revealed that the company was experiencing a “marked slowdown” within the plant-based protein category.
Unsure of the Future
“We are not yet sure who is right – Beyond Meat or Maple Leaf Foods – but when we hear commentary like this, it’s hard to be completely confident about the future of the category,” Goldman wrote.
Beyond Meat shares have fallen 38% throughout the year and has a current market cap of USD4.88 Billion.