Despite the number of people eating plant-based food, one of the world’s most popular vegan companies is in danger of going bankrupt. Beyond Meat’s stock price has collapsed. Almost half of BYNDs were put down on loss value. Despite the growth of the plant-based meat market in the US in 2020, sales were flat in 2021. Beyond Meat, which got into the red due to its massive revenue boost, is in danger of going bankrupt. After reporting third-quarter sales in November, the company warned that its sales could drop by up to 17% in the fourth quarter. This prompted investors to sell BYNDs. But the stockholders with small capital bet on rising, hoping the stock will eventually stabilize and recover.
Short positions in Beyond Meat reported about 44% of its publicly-traded shares on January 10, according to S3 Partners. Even though the company has been able to announce some good news, such as the signing of deals with fast-food companies, the stock has already fallen by half. Jim Chanos, a short seller, said that Beyond Meat is still valued at 10 times its revenues, which is still significantly higher compared to the industry’s average.