As reports for the third quarter of 2021 come in, it’s clear that some companies have exceeded Wall Street expectations while others have disappointed. One name in the less positive category has been Beyond Meat (NASDAQ:BYND), a company formerly hailed as a culinary innovator. Shares of BYND stock are down today and numbers are in the red across the board.
There’s little reason to suspect that these downward trends will reverse any time soon. The company’s forecast looks bleak and across the industry things aren’t much better. Despite its ticker symbol, BYND stock is on a downward trajectory.
In less than two hours of trading, BYND stock is already down more than 15%. Despite a slight uptick, the stock isn’t showing any signs of rebounding. Shares spent this week flatlining before this morning’s plunge, falling roughly 22% for the week — about the same percentage by which they’ve declined for the month. For the past six months, BYND is also down more than 25%.
Beyond Meat isn’t the only stock in its field that’s tumbling. Fellow plant-based food producer Tattooed Chef (NASDAQ:TTCF) has also been trending today for negative reasons. Shares have declined by some 5% as of this writing. An additional peer, The Hain Celestial Group (NASDAQ:HAIN), is experiencing similar difficulties. Shares of HAIN stock have fallen by over 10% so far today.
Why This Matters for BYND Stock
These patterns of decline across a niche market speak to an underlying truth. People just aren’t interested in plant-based products anymore — at least not enough to sustain an entire industry. While there is certainly a growing interest in plant-based products meant to substitute meat, it doesn’t seem to be enough for multiple companies to grab a market share and thrive.
This could be due to the increasing awareness that, despite being billed as healthier and more sustainable, fake meats are not automatically better for you. Reports have indicated that they can often include higher levels of sodium and higher calorie counts, thereby leading to increased weight gain. As Mother Jones notes, plenty of experts have raised concerns regarding the sustainability of fake meat, too.
BYND stock should serve as a good indicator of how America’s attitude toward fake meat has shifted. Just as its products were formerly trendy, Beyond Meat enjoyed meme-stock status, likely what spurred some of its earlier gains. Despite predictions that it may not be out of momentum, no signs point to that happening. Consumer interest in the company has waned and investor interest has moved in sympathy.
What It Means
This disappointing quarter is an appropriate end to a disappointing year for BYND stock. Plenty of experts are worried about Beyond Meat’s future — and they are not wrong to be. Concerns that the company may be facing market saturation more quickly than anticipated seem to be coming true as Beyond stares into the abyss of an uncertain year with little cause for investor optimism.
Will the fascination with fake meat return in 2022? There’s no way to know for sure, but the industry trends outlined above shouldn’t give investors much hope. Beyond Meat has a sustainable mission, but that doesn’t mean its long-term growth will be.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
