On Tuesday, the 29th of October 2019, shares of the plant-based meat substitutes producer, Beyond Meat Inc., headquartered in El Segundo, CA, was butchered as much as 20 per cent as investors were hurried on to banking cash following lifting up of a stock sales ban, while mounting worries over the vegan-burger maker’s rising expenses alongside increased market competition had added to investors’ woes.
In point of fact, latest staggering of Beyond Meat shares that had rubbed out more than 20 per cent of its market cap at a single session came forth a day after the world’s largest fast-food chain operator, McDonald’s had shown interest in plant-based meats and introduced some plant-based food substitutes in some of its stores as a trial run, which in effect ratcheted up the heats further in a highly clogged market of plant-based meat substitutes amid growing health consciousness among the consumers.
Besides, followed by the lifting up of a ban on Beyond Meat Inc. stock sales, shares of the vegan-based food producer nosedived as much as 21.30 per cent during pre-market trading to $82.96 per share and continued its course through a downhill slope to wind down Tuesday’s (October 29th) market 22.22 per cent lower at $81.99 per share.
Nonetheless, adding a cautiously optimistic outlook towards Beyond Meat Inc.’s share price following a havoc-scale sell-off which had witnessed its busiest session since its IPO back in May with almost 27 million shares worth of $2 billion were traded in early afternoon US trading hours, a JPMorgan analyst, Ken Goldman said on Tuesday’s (October 29th) Wall St.
wrap-up, “What is less apparent, though, is the number of shareholders willing to sell with the stock down well over 50% from its high. Either way, putting the lock-up expiry in the past ultimately should prod some investors to start buying the stock again. ”