Beyond Meat Inc. (NASDAQ: BYND) has seen a dramatic rebound this week, regaining its “meme stock” status as shares surged 59% on Tuesday following a historic 127% rally on Monday.
The plant-based food company’s remarkable recovery is being fueled by both its inclusion in a thematic ETF and a new distribution deal with Walmart.
Meme stock status sparks massive rally
The stock’s recent rally comes after Roundhill Investments, an ETF provider specializing in thematic funds, added Beyond Meat to its Roundhill Meme Stock ETF (MEME).
The inclusion has triggered a short squeeze, with investors who had bet against the stock forced to cover their positions.
According to FactSet, more than 63% of the shares available for trading were sold short, amplifying the volatility and upward price movement.
Monday marked Beyond Meat’s best trading day ever, with the stock climbing over 127% to around $2 per share, after closing last week at just 65 cents.
Shares continued to rise Tuesday, hitting $2.41 at one point, reflecting a 63.95% increase from the previous session.
The sudden surge is reminiscent of Beyond Meat’s earlier meme stock appeal among retail traders, who coordinated online to drive interest in the stock despite weak fundamentals.
In 2021, Bank of America highlighted Beyond Meat as a “Reddit stock to watch,” though it ended that year down more than 47%.
Corporate developments boost momentum
In addition to the ETF addition, Beyond Meat announced a partnership with Walmart to expand its product distribution to more stores across the United States.
This development has added to the bullish sentiment surrounding the stock, giving investors confidence in its growth potential despite the company’s recent financial struggles.
The rebound comes after a period of extreme volatility.
Beyond Meat’s stock plummeted more than 67% last week following the company’s announcement of a finalized debt deal.
The stock had previously been trading well below its IPO highs, with shares surpassing $230 in 2019 before declining steadily over the years.
Over the last five years, Beyond Meat posted negative returns, at times falling into penny stock territory.
While the Walmart deal does not change the company’s long-term challenges, it has reinforced investor optimism that strategic partnerships could help stabilize operations and sales, at least in the short term.
Signs of a frothy market
Market analysts note that Beyond Meat’s resurgence may also signal the speculative nature of current market conditions.
Retail traders are increasingly piling into volatile, high-risk stocks, contributing to sharp price movements regardless of underlying fundamentals.
Roundhill Investments itself temporarily shut down its meme ETF due to low interest but revived it earlier this month as retail enthusiasm for speculative names returned.
Beyond Meat’s return to meme stock status highlights the continued influence of retail trading communities in shaping stock prices, especially in high-profile, well-known companies.
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