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Beyond Meat, Inc. (NASDAQ: BYND) was registered in Delaware, USA, in 2011. Currently, it is one of the fastest growing US food companies that produces and sells vegetable-based meat products with the taste of beef, pork, and poultry. The products made of vegetable based substances and plant matter which allows consumers to feel the real taste of meat and is packed with useful nutrients.
The company’s primary products are Beyond Burger and Beyond Sausages, which are currently sold at approximately 30,000 spots in the US as well as several other countries. The use of plant based meat products of helps solve many problems related to human health, conservation of natural resources, and preservation of animals.
Over the past few years, the company has increased its net revenue from $16.2 million in 2016 to $87.9 million in 2018, while the company continues to invest tens of millions of dollars into innovations and business growth every year.
IPO Date of BYND Stock
BYND Stock IPO was presented on May 2, 2019, at $25 per share. Actually, the BYND stock costs $176.79, which is more than seven times higher than its initial price tag. In this way, Beyond Meat has become one of the biggest performers in the IPO category in the first half of 2019.
According to the analytical company S3 Partners, traders of short positions who did not believe in the stock cost rising suffered losses equal to $560 million during a period of rapid stock growth in price since May 2019.
The constant increase in the number of outlets that sell the Beyond Meat products has led to Beyond Meat shares exploding in price by more than 50% in June 2019. The company’s revenue stream increased by more than 200% at an annual rate up to $40 million, while gross profits rose by 420% up to $10.5 million.
BYND Stock News
Bears of the exchange market believe that the BYND stock price is highly overvalued. This statement has no ground since the stock is now traded by more than a 65-fold increase compared to their initial rate of $25. Fans of the bull market have suggested that the company’s shares will rise in price, despite their high volatility and the fact that the stocks fell in price below $50 several times in the first month after the IPO presentation.
In the first quarter of 2019, the company had a net loss of $6.6 million, which is equal to $0.95 per share. However, these losses were predictable, since this recently created joint-stock company actively invests in research and development, and business market expansion.
The owners of Beyond Meat believe that the production of plant-based meat can eventually turn into an industry worth $270 billion in a year or so. According to experts’ opinion, the company’s revenue is expected to be at a level of $210 million by the end of 2019.
BYND Stock Price
Beyond Meat sustained operating losses from the beginning of its activity, although the operating margins steadily decreased due to increasing revenues. Nevertheless, BYND stock is expected to reach the break-even point at the level of operating profit in 2019.
A further increase in profitability will continue in 2020 due to more significant revenue and volume of sales, as well as partially compensated investments in research and business development. The operating margin is expected to be 0% in 2019 and 1.2% in 2020, which is significantly higher than its rate of -31.8% in 2018.
Many analysts have suggested that Beyond Meat shares are not yet as profitable in the short run. As for long-term investment, BYND meat stock can be a welcome addition to the portfolio of a sagacious and opportunistic trader.
