Beyond Meat stock price has crashed and moved below the important support level at $1 as concerns about its future remains. BYND was trading at $0.6456 on Friday, down sharply from the all-time high of $240.
Beyond Meat’s market capitalization has plunged from over $14 billion at its peak to $34 million today. This trend may continue as the risks facing the company intensify.
Why Beyond Meat stock has plunged
Beyond Meat is a company that aimed to make the world a healthier place by creating plant-based meat that has become highly popular among young people.
This growth accelerated after the company inked major partnerships, including with companies like McDonald’s and Yum Brands. As a result, its annual revenue jumped from $32.6 million in 2017 to a peak of $464 million in 2021.
This growth then started to deteriorate, falling to $418 million in 2022 to $343 million in 2023, and $318 million in 2024. Analysts estimate that this slowdown will continue in the foreseeable future as demand for plant-based meat and milk replacement fades.
The average estimate of 6 analysts is that its annual revenue will plunge by 13.4% this year to $282 million. It will then plunge to $280 million in the coming year.
Beyond Meat is also losing millions of dollars. Indeed, a closer look at its financial results shows that it has never made net profits since its inception. Its annual loss in 2024 was $293 million, down from $338 million in the previous year. Altogether, it has lost over $1 billion over time.
Beyond Meat stock price plunged below $1 last week after the company made a debt swap that diluted its investors significantly. It plans to issue 316 million new shares and swap its debt.
The debt swap means that the company’s risk for going bankrupt has eased for now. It now has some breathing space to engineer a turnaround. However, the dilution was much bigger than what analysts were expecting.
The most recent results showed that Beyond Meat had about $103 million in cash and short-term investments, down from $131 million in December. Its current assets stood at $297 million, while the long-term liabilities rose to over $1.27 billion.
BYND stock price analysis
The daily chart shows that the Beyond Meat stock price has plunged in the past few years, moving to a record low of $0.50. It has now lost over $14 billion in value and become a penny stock.
The stock moved below all moving averages, while the Relative Strength Index (RSI) and the MACD have all plunged and moved to the oversold levels.
Therefore, the stock will likely continue falling in the coming months as its headwinds rise. However, there is a risk that it may have a dead-cat bounce, a situation where an asset in a freefall bounces back temporarily. It may also go through a short squeeze because it has a short interest of over 20%.
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