A meme-fuelled buying spree sends Beyond Meat shares soaring 1,000% in just four chaotic days
Beyond Meat, the once-doomed pioneer of plant-based burgers, has stunned Wall Street with a jaw-dropping 1,000% surge in its share price over just four trading days. The extraordinary rally has reignited debate over market speculation, meme stock mania, and the fine line between trading euphoria and financial chaos.
The vegan burger maker, whose products promised to revolutionise the food industry when it went public six years ago, had long been teetering on the edge of irrelevance. Sales have been sluggish, losses have mounted, and the company has failed to post a quarterly profit in more than five years. Yet this week, its stock erupted from the ashes, sending traders into a frenzy reminiscent of the GameStop and AMC manias of 2021.
On Wednesday, Beyond Meat’s share price climbed by as much as 112% before tumbling in volatile after-hours trading to close around $3.60 — still far below its brief midday peak above $7. The spark came from a perfect storm of online hype, short covering, and a surprisingly upbeat corporate announcement.
Momentum began building late last week when a Reddit user encouraged retail investors to pile into the stock, reviving memories of past meme stock surges. Then on Monday, Roundhill Investments added Beyond Meat to its “Meme Stock ETF,” effectively placing it in the same category as other cult-like market favourites. The inclusion triggered a buying spree, particularly among traders betting that the stock could soar as short sellers scrambled to cover their losses — a textbook “short squeeze.”
Tuesday brought another twist. Beyond Meat announced a new distribution deal with Walmart, which would expand the availability of its plant-based products. The announcement fuelled hopes that the company might finally claw back some lost ground in the fiercely competitive alternative protein sector.
“This company was essentially being thought of as going out of business not that long ago,” said Mark Hackett, chief market strategist at Nationwide. “Getting a positive catalyst like the Walmart deal, which could be transformational with the rebound of demand and getting products in the hands of consumers — that is absolutely the trigger.”
But Hackett tempered the excitement, warning that the rally may have more to do with hype than substance. “You’re really trading on emotions and technicals, versus fundamentals,” he said, noting that Beyond Meat’s financial condition remains fragile.
Even after its meteoric climb, the company’s shares are still a shadow of their former glory. In 2019, Beyond Meat traded above $230 at its peak, before collapsing amid waning enthusiasm for meat substitutes and mounting losses.
The dramatic price swings have revived concerns about speculative excesses across the broader market. Analysts warn that the same kind of herd-driven behaviour that powered Beyond Meat’s rise could also be fuelling overvaluation in sectors like artificial intelligence.
JP Morgan Chase chief executive Jamie Dimon recently sounded the alarm, telling the BBC he was “far more worried than others” about a major correction, which he believes could hit within the next two years.
The Securities and Exchange Commission has also taken note, issuing warnings about possible manipulation tied to meme stocks. Regulators have expressed concern that retail investors are being drawn into high-risk trades driven by social media hype rather than solid business performance.
Despite calls for tighter oversight on short selling and online-driven trading, little progress has been made in curbing the speculative culture that periodically grips markets.
For Beyond Meat, the wild four-day surge may provide temporary relief for long-suffering shareholders — or a fleeting encore before reality sets back in. Either way, the episode serves as a vivid reminder that in today’s markets, hype can still overpower hard numbers, if only for a moment.