BYND - Why Beyond Meat Stock Dropped 12% in June
2024-07-03 09:14:22 ET
Shares of Beyond Meat (NASDAQ: BYND) stock fell 12% in June according to data provided by S&P Global Market Intelligence . It was a continuation of negative investor sentiment as the company continues to report sales declines and losses.
Beyond Meat was supposed to be the next big thing. It seemed to be riding a vegan trend when it went public in a hugely hyped initial public offering (IPO), but it seems like the hype wasn't justified. What were strong revenue increases, in hindsight, look like interest in something new. But it didn't stick. Revenue keeps sliding and was down 18% year over year in the 2024 first quarter. Gross profits were back in the positive after going negative for a while, but gross margin was a meager 4.9% in the quarter.
People are still buying Beyond Meat products, and it had $76 million in revenue in the quarter. But net loss was only a drop better than last year's $59 million at $54 million. That means its losses are almost as much as its revenue, and a business can't sustain itself with these profit and margin levels.
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Why Beyond Meat Stock Dropped 12% in June