2023-11-30 10:15:00 ET
Optimism is growing that there could be a soft landing in the economy next year. A big bad recession may not happen, which would be great news for stocks. And so it's little surprise that in the past month, shares of Beyond Meat (NASDAQ: BYND) have been rising, as it's one stock that could benefit from a more favorable outlook for the economy. Can Beyond Meat's stock go even higher next year?
Inflation has been slowing in the country and there is the possibility that there could be at least one rate cut next year. It's by no means a guarantee, but with a potential recession taking place in 2024, there's a chance that interest rates could finally start coming down.
For a company such as Beyond Meat, which incurs losses and burns through cash, a lower interest rate makes it easier for the business to grow, because it can take out loans at a lower rate. And when interest rates decline, that means investors get lower returns from safer options, such as holding money at a bank. That can lead to more money flowing back into the stock market, which, in turn, can also result in more people buying up shares of Beyond Meat.
For further details see:
Could a Soft Landing for the Economy Boost Beyond Meat's Stock in 2024?