As a child, I used to listen to the classics of Mozart and Beethoven. At the time, I dreamed of being a conductor for one of the major orchestras. Of course, that dream didn’t quite turn out as I had once hoped. Nevertheless, I still craft original music in my spare time so it wasn’t a waste. And this brings me to Beyond Meat (NASDAQ:BYND) stock.
How, you may ask? Like many things in life we enjoy, music is subjective. Fundamentally of course, the structure of music involves both math and science. We’re talking about sound waves and frequencies and harmonization. Those elements are very much objective. But at the end of the day, the arrangement of these components as desirable (or not) rests on preference.
Currently, BYND stock attracts substantial debate. Some analysts see it as natural progress toward a cleaner, healthier ecosystem. Others view Beyond Meat stock as a fad built on prior fads regarding meatless meats.
Further, debate rages on the nature of the company’s product. Some say it’s better for people to eat fake meat than real meat (which obviously involves killing innocent animals). However, many dietitians counter that the processed ingredients underlying BYND stock hardly warrant a “healthy” label.
Before writing this piece, I intended to give my two cents in this increasingly heated sector. But one thing struck me: the success of Beyond Meat stock rests largely on a broad range of opinions.
That’s why music labels never bet the farm on any one artist. Instead, they sign multiple acts. What one person considers good music another considers noise. And that’s a worrying risk for BYND stock in the longer term.
Beyond Meat Stock More Fad than Foundation
Almost always, you never want to judge a company via anecdotal evidence. But with BYND stock, I genuinely believe the subjective realm provides startling insights.
Previously, I’ve given my thoughts about the health aspects of Beyond Meat stock. But for the purposes of this story, the biggest question is this: how does the company’s fake meat taste? Scouring for opinions in the blogosphere, I came across some interesting takes.
According to MarketWatch contributor Brett Arends, he tried the company’s flagship Beyond Burger products three times. Not only that, he varied the format from eating at a fast-food joint to cooking the patties at home.
In his words, Beyond Burgers “tastes to me like a dry, rubbery patty. The flavor? Meh.” Later, Arends added that the fake meat tastes like “those cheap, frozen hamburgers we used to get at high school.” Not exactly a ringing endorsement.
However, Forbes’ contributor Micheline Maynard was much more generous with her assessment. She described the PLT as “something that tastes like a fast-food burger.” A couple million more like Maynard and Beyond Meat stock could be a big winner.
But one of the problems is that I’ve yet to come across a ringing product endorsement. “Something” that tastes like a burger isn’t exactly convincing language. Rather, it’s the language people use to describe a passing novelty.
More importantly, fake meat is not a necessity like the internet or a smartphone. With such varied opinions, I find it difficult to believe that Beyond Meat stock will win on mass volume. But it needs to win on volume if the broader business is to be viable.
Subjectivity to Impose Hardships on BYND Stock
However, because opinions are so varied, this dynamic may benefit Beyond Meat stock, at least in the short run. As RiskHedge CEO Olivier Garret noted, this is not the first time that a consumable-related fad overcame common sense.
A few years back, flavored sparkling water brand LaCroix captured buyers’ attention. As a result, shares of LaCroix’s parent company National Beverage (NASDAQ:FIZZ) skyrocketed to astonishing heights. However, as competition entered the space, FIZZ simply went flat.
As Garret argued, it’s not that people stopped drinking sparkling water. They just stopped drinking LaCroix in such high volume. This bodes poorly for Beyond Meat stock longer term since the underlying product isn’t necessarily unique. After all, fake meat has thrived for centuries.
And like some of the crap that I hear on the radio, fake meat in general is divisive. Some may eat it occasionally. Most, I suspect, will try it once or twice, never to return. And because BYND only has the fake meat to rely on, if their products don’t take off, that’s it.
In other words, Beyond Meat stakeholders must pray that the company’s playlist will resonate past one-hit wonder status. As a short-term trade, the hype might drive BYND temporarily higher. But the longer-term narrative lacks confidence.
As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.