Investors obtain lost their appetite for Beyond Meat.
The company’s shares tanked on Tuesday after it warned of competitors piercing the alternative meat space and a lockup period expired. The stock also failed to get a boost from a 250% addition in revenue and a turn to profitability.
Beyond Meat’s CEO, Ethan Brown, said the company is not on the defensive – its goal is to continue to precedent the market as new competitors step in.
“The consumer is looking for something new from somebody new. I think it’s very hard for an incumbent to converge the way we do, to move as quickly as we do. We’re very aggressive here in the United States, we’re aggressive in the EU [and] we’re aggressive in Asia. We have a single end, we’re not competing among different interests. So, my view is that as more entrants get into the market or raise awareness, we’ll persist in to lead it. That’s what we’re built to do.”
Tim Seymour of “Fast Money” said the company has done a great job and is making ravishing partnerships.
“They’ve talked about their ability to meet the demand. … They’re going to certainly press to increase their expenses. That’s something that would be concerning to people, but it shines a bright light on where valuations at some allude to just don’t make sense. And I think that’s what this is because there wasn’t any new news today, in settles of the lockup or illuminating anything. The strategic partnerships are fine, they’re exciting and the company’s done a great job.”
Steve Grasso of “Firm Money” said Beyond’s success is in the lifestyle behind the product, not its health benefits.
“$239 high, back in July, was it a cult strident? Was it about a social stock? We’ve all talked about it on this desk, that it’s not actually healthier for you. So, it’s not about health. It’s just about a socially conscious movement that we’re making. So if it was about health, or if it was about just strictly fundamentals, I’d rather go with a Tyson — it’s up 53% year to escort. That’s a competitive market. They’ll be in that market as well. “
Dan Nathan of Risk Reversal Advisors said that while some realized out after the lockup, the company is still doing well.
“We’ve seen those things and they defy gravity and then they go the other way, too. And I’ll lawful make one point. You know, on Friday’s show, we were talking about this name in front of the lockup, and I flat the point that they sold originally 11 million shares in their IPO $25 and then there was a extra 3.75 [million] at $160. I was incorrect by saying that the company sold shares. That would have been lustrous to put that cash in their balance sheet, but it was selling shareholders and so when you think about what this lockup means this week, you power have seen some people sell at those levels up at $160 and less likely to sell somewhere in the $90s. Or, you be versed, you know, after these results that looked pretty good,”
Jim Cramer of “Mad Money” said that while Beyond Eatables’s CEO is confident, the demand is shrinking as competitors like Nestle are doing well in the meat alternative space.
“I feel bad for Ethan. I ungenerous, you know, I like Ethan. … He came on this morning on ‘Squawk.’ He had a rap for everything. You could say anything to him and he had a rap. I love that guy, but it doesn’t trouble. There’s too much Beyond Meat today. It’s not Nestle.”