Beyond Meat stock tumbles 17% as analysts worry about the company’s long-term growth

Beyond Meat’s stock cratered 17% in morning trading Thursday as Wall Street voiced doubts about the company’s growth prospects. The plant-based meat maker reported disappointing third-quarter results after the bell on Wednesday. Its loss was wider than expected, while revenue fell short of expectations, even after a warning from the company last month. Beyond also issued a gloomy outlook that indicated sales wouldn’t snap back immediately. Jefferies called it “the quarter that likely broke the camel’s back.” Bernstein analyst Alexia Howard downgraded the stock, telling investors to not buy the dip. “We view the results as further evidence that Beyond’s business is reaching market saturation faster than expected and that the company has deeper problems that won’t be easy to fix,” Credit Suisse analyst Robert Moskow wrote in a note. Beyond blamed a number of factors for its weak quarter, including severe weather, the delta variant and restaurants’ labor challenges. CEO Ethan Brown told investors that the problems were largely short term.

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