One-time penny stock Beyond Meat soars after addition to meme ETF, jumps 80% on Tuesday

Beyond Meat It regained some of its meme mojo status, surging 83% on Tuesday.

The food company known for its plant-based meat alternatives is having an incredible week, with its shares soaring more than 127% on Monday after Roundhill Investments, which develops thematic ETFs, added its name to the Roundhill Meme Stock ETF (MEME).

It continued its rise on Tuesday after Beyond Meat announced a deal with Walmart to expand distribution to more stores across the United States.

The addition of the ETF apparently led to a short squeeze as investors who had bet against the stock were forced to cover their positions. More than 63% of publicly traded shares were sold short, according to FactSet.

This is a remarkable turnaround for a stock that has seen the company’s shares tumble more than 67% in the past week. announced concluded a debt agreement. The stock is currently trading around $2 per share after closing last week at just 65 cents.

Indeed, the stock has been under pressure for many years, losing returns in each of the last five years. After surpassing $230 per share following an IPO in 2019, it has since become a penny stock.

But this week’s rally is reminiscent of a time when Beyond Meat had meme stock status among retail traders who entered the stock based on sentiment rather than institutional fundamentals after coordinating on online message boards.

In 2021, Bank of America named Beyond Meat a Reddit stock to watch. It finished the same year down more than 47%.

Beyond Meat’s comeback could be the latest sign of a frothy market as investors turn to more speculative names despite rising valuations, possibly a signal that the market is about to top out.

Roundhill actually shut down its meme ETF at one point due to lack of interest, but revived it earlier this month as retail investors jumped back into this brutal bull market.