Beyond Meat (NASDAQ: BYND) aims to create "delicious plant-based" burgers, beef, sausage and more by using only plant-based ingredients. This is its way of addressing four global issues: human health, climate change, constraints on natural resources and animal welfare. Its research shows that a Beyond Burger uses less water, land and energy than a beef burger while also generating fewer greenhouse gas emissions.
While Beyond Meat is not alone in this mission of creating a tasty vegan burger, it is one of the leading companies in this emerging and trendy market. That's helped the meat company earn a spot on many watchlists. Let's take a look at how you can invest in Beyond Meat and buy Beyond Meat stock.
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How to Invest in Beyond Meat
Investors looking into viable meat substitutes may want to consider Beyond Meat. You can start investing in Beyond Meat by completing the following steps.
Pick a Broker
The first step for investing in Beyond Meat is to use a brokerage. You will not be able to invest directly with the company. The best brokerages usually have the lowest commissions but also have features that support you with research and education, such as stock screeners, analyst estimates and price targets. This information can help you make smarter investment decisions.
Evaluate Different Brokers' Trading Platforms
Most online brokers offer their customers a virtual or demo account to evaluate their platform and practice trading without committing any funds. You can open accounts like this with as many brokers as you want to see how well each trading platform fits your needs. Trading platforms vary from broker to broker, and some include features you will not find with others.
Fund Your Trading Account
To purchase BYND stock and explore other meat alternatives trading on the stock market, you must deposit funds into a trading account. Depending on how much you budget for your stock purchase, you should deposit at least that amount into the trading account or the minimum deposit amount required by the broker, whichever is greater.
Keep in mind that each broker has its own rules for deposits and withdrawals. Most take credit cards and bank transfers for deposits, so make sure you have access to the right method for making deposits.
Buy Beyond Meat Stock
Put in a bid for BYND stock. Most brokers make it straightforward to conduct a buy order. You can choose to place a market order for immediate execution or a limit order if you want to buy BYND at your desired price point.
You may also want to closely watch BYND stock to get a feel for the market and determine an optimum price to buy at.
Another good idea is to check the news and listen to the most recent conference call. News can often affect the price of BYND stock and could provide a buying opportunity or signal that better levels may occur in the future. Conference calls give investors a better idea of the company's future prospects.
A good way to determine a price level to purchase Beyond Meat stock is to analyze the stock with technical analysis to get a sense of the best entry price and time to buy. Once you have decided on the level, you can enter a bid at the market or at the lower price level you think is best.
Pros and Cons of Investing in Beyond Meat
Beyond Meat has strengths and weaknesses to keep in mind before entering a position.
Pros
- First mover advantage: While there is competition, Beyond Meat is the first company to introduce plant-based burgers in the growing vegan marketplace. For many vegetarians and vegans, it's hard to forget that time you bit into a Beyond Meat burger and experienced that smoky, meaty taste and saw the red "blood" drip onto the plate. This kind of innovation makes an impact on the public, which in turn interests investors.
- Vegan market boom: Veganism is becoming more and more popular, with it being mainstream in a lot of major cities. The global vegan food market is estimated to be worth $24.3 billion by 2026, growing at a compound annual growth rate above 9.1% over the forecast timeframe. It's safe to say that veganism is here to stay.
Cons
- The trend is new: Many financial experts are wary of Beyond Meat's sudden success in the stock exchange. They are comparing it to similar food products that were deemed the next best thing, only to slowly lose the public's interest. The fact that Beyond Meat's vegan patty costs almost triple that of a regular meat patty may prove to be unsustainable for the average consumer.
- Rising competition: Even though Beyond Meat is the first of its kind, it has definitely inspired competition. Some of its competitors may soon steal its spotlight, including Impossible Burger, which is already available in many restaurants.
- Declining revenue: Beyond Meat has reported several consecutive quarters of revenue declines. Those developments have decimated the company's market cap. It remains to be seen if CEO Ethan Walden Brown and the team can ignite a turnaround.
History of Beyond Meat Stock Price
Beyond Meat Inc. entered the market in May 2019, boasting an initial $65 stock price. It seemed like this was just the type of company that investors were hungry for and many took a big bite out of Beyond Meat's plant-based product right away. Within three months, Beyond Meat saw its stock rise to $234 at its peak in July 2019. This made it one of the hottest and juiciest stocks of 2019.
But this healthy honeymoon didn't last too long. By August of the same year, the stock price had dropped to $144, losing almost half its value even quicker than its rise to the top. While financial analysts can't pinpoint the exact reason for this sudden drop, many are pointing toward big-name competitors with cheaper-priced stocks and products.
In January 2021, Beyond Meat shares traded higher after the company announced a joint venture with PepsiCo Inc. (NYSE: PEP) to develop, produce and market snack beverage products made from plant-based protein. However, the gains were short-lived.
The Federal Reserve interest rate hikes, declining demand for Beyond Meat products, and other factors led to a disastrous stretch. Beyond Meat's stock price fell below $10 per share for the first time in 2023. It's questionable if Beyond Meat will be able to keep up with names like Nestle (OTCMKTS: NSRGY) and Tyson Foods Inc. (NYSE: TSN), even if Beyond Meat was the trendsetter at the time. Some investors see the collapse as a buying opportunity, while others have removed BYND from their watchlists.
How to Choose the Best Broker for You
Knowing when to buy and sell stocks requires expert management. That's where finding a good broker comes into play. Benzinga recommends researching a few brokers to see if their style and experience align with your goals. It's worth the time and legwork to investigate; their expertise will save you money and time and give you peace of mind. Here are some of Benzinga’s favorite brokers.
Frequently Asked Questions
Who is Beyond Meat’s biggest competitor?
Impossible Foods is currently Beyond Meat’s biggest competitor, but larger meat companies are getting involved with vegan meat.
Who are the top shareholders of Beyond Meat?
Vanguard, Parkwood, BlackRock, Wolverine Asset Management and Whitebox Advisors are the top shareholders of Beyond Meat Inc.
Is Beyond Meat declining?
Beyond Meat has reported several quarters of declining revenue. The company is currently facing several headwinds. Some investors may see this as a buying opportunity, while others are staying on the sidelines.