Investors Are Having a Cow. Plant-Based Beyond Meat (BYND) Exceeds Q4 Revenue Estimates, Promises to Steeply Cut Costs.

PRISM Zombie Index Leader Beyond Meat, Inc. (BYND), is seeing a big gain today as its trading close to 45% higher on its recent earnings release. However, outside of exceeding the Street’s Q4 revenue estimates ($73.7M vs Factset $66.7M) the rest of the report was nothing the market should be having a cow over.

So, where’s the beef? Two additional factors are likely contributors creating the “moooove”. CEO Ethan Brown stated his intention to “steeply reduce” costs in 2024 which would be significant in impacting the company’s utterly poor profitability.  Secondly, the stock has been put out to pasture by many investors or in other words, it has had a very high short interest. These types of price movements are typically exaggerated for companies with high short interest.

Before putting too much stock, into this trade, investors need to remember that even if the company can stick to its promise of significant cost reduction, it will still need to grow revenues to sustain the business then it may promise greener pastures ahead….