Even though the Fed’s interest rate hikes flushed a lot of losers out of the market since 2022, a handful of stocks to short remain, against all odds. These three companies are pure products of ZIRP-era enthusiasm, and though each trades well below pandemic period highs, they’re still grossly overvalued. While each may not face delisting anytime soon, that’s a good thing—if you’re looking for the best stocks to short.Each of these three companies face continued challenges ahead and, in many cases, even more ...

Don't look now, but Wall Street is starting to warm up to Beyond Meat (BYND -0.41%) stock again. The plant-based meat specialist's shares rallied after its late-February earnings update and are now up about 10% year to date, outpacing the 8% gain of the S&P 500.The company will still likely disappoint long-term investors. The business isn't on a clear path toward steady sales growth and is generating big losses. Here's why you'll want to avoid Beyond Meat stock for now.1. Demand is weakA lot of the current ...

Financial Performance - In 2023, the company incurred net losses of $338.1 million, $366.1 million in 2022, and $182.1 million in 2021, indicating a history of financial losses [104]. - In 2023, the company's net revenues decreased to $343.4 million from $418.9 million in the prior year, representing an 18.0% decrease [122]. - The company achieved cash flow positive operations during the three months ended September 30, 2023, but this was influenced by transitory factors that may not recur in future periods [104]. - The company incurred one-time cash charges of approximately $1.8 million related to workforce reductions, which affected about 65 employees, or approximately 19% of the global non-production workforce [108]. - The company recorded an incremental provision for excess and obsolete inventory of $38.0 million in Q4 2023, primarily due to the Global Operations Review [118]. Market Demand and Sales - The volume of products sold decreased by 8.1% in the year ended December 31, 2023, primarily due to weak demand in the plant-based meat category, especially in U.S. retail and foodservice channels [106]. - Consumer demand for plant-based meat products has continued to decline, negatively impacting sales and profitability across all markets except international retail and foodservice [105]. - The company has experienced prolonged, weakened demand in the plant-based meat category, particularly in the refrigerated subsegment, which has adversely affected sales and profits [105]. - Economic uncertainties, including inflation and recessionary pressures, have led consumers to shift towards lower-priced offerings, impacting demand for the company's products [100]. - The year-over-year decrease in U.S. foodservice channel net revenues in 2023 was primarily due to the end of a limited-time offering at a large QSR customer [141]. Cost Structure and Operational Challenges - The company faces significant inflationary pressures, with increased costs for raw materials, labor, and transportation negatively affecting operating results and future profitability [102]. - The company’s strategic initiatives to improve cost structure may have long-term adverse effects, and the anticipated operational or financial benefits may not be realized [107]. - The company faces risks related to achieving cash flow positive operations, including declining demand in the plant-based meat category and challenges in cost reduction [109]. - The company may consider further cost-cutting measures, including downsizing and exiting certain operations, which could result in significant revenue loss [111]. - Ingredient and packaging costs are volatile, which could negatively impact profitability if price increases cannot be implemented [194]. Supply Chain and Supplier Risks - The company’s reliance on a limited number of third-party suppliers poses risks to its ability to procure high-quality raw materials, which could disrupt operations [90]. - The company relies on a limited number of suppliers for raw materials, which poses risks to its ability to obtain necessary inventory in a timely manner [126]. - Supply chain disruptions could materially adversely affect the company's operating and financial results [132]. - The reliance on third-party transportation providers poses risks, including potential delivery disruptions that could result in lost sales and increased shipping costs [158]. Competition and Market Position - The company faces increasing competition in the plant-based meat category, necessitating heavier discounting and promotions to maintain market share [154]. - The company competes with major conventional animal-protein companies and other food brands that have greater financial resources and may offer lower prices [198]. - The food industry is dominated by multinational corporations, which may lead to challenges in competing effectively and retaining market share [199]. - The company is facing increased competition and may need to adjust its pricing architecture, potentially impacting net revenues, gross profit, and profitability [197]. Workforce and Operational Efficiency - The workforce reduction was substantially complete by the end of 2023, aimed at reducing operating expenses [108]. - The company plans to reduce its workforce by approximately 65 employees, representing about 19% of its global non-production workforce, which may adversely affect employee morale and operational efficiency [164]. - The unemployment rate in the Columbia, Missouri market was 2.1% as of December 2023, indicating tight labor market conditions that may impact hiring [149]. Regulatory and Compliance Risks - The company is subject to extensive regulation by the FDA and other authorities, which governs the manufacturing and safety of food products [267]. - The company is subject to various data privacy laws, including the EU's General Data Protection Regulation and California Consumer Privacy Act, which may require changes in business practices and incur significant compliance costs [232]. - The company’s international operations are subject to the Foreign Corrupt Practices Act (FCPA), which poses compliance risks [209][210]. - Changes in laws regarding the use of the term "meat" for plant-based products could adversely affect the company's business and financial condition [271]. Financial Obligations and Capital Structure - As of December 31, 2023, the company had approximately $1.3 billion in consolidated indebtedness and other liabilities [237]. - The company issued a total of $1.15 billion in 0% Convertible Senior Notes due 2027 in a private placement [238]. - The company may incur additional indebtedness to meet future financing needs, which could limit cash flow available for operations [239]. - The company may not have sufficient funds to repurchase its Convertible Senior Notes or pay cash upon conversion when required, leading to potential defaults [241]. Intellectual Property and Innovation - The company has three issued patents in the U.S. and ten issued patents internationally, with additional pending applications, highlighting its focus on intellectual property protection [218]. - The company is continuously testing alternative plant-based proteins to enhance product quality and appeal [191]. - The company’s ability to protect its proprietary technology is crucial for its commercial success, but legal protections may be limited [218]. Stock Market and Investor Relations - The market price of the company's stock has been highly volatile, influenced by various economic and competitive factors [283]. - The company has never paid dividends on its capital stock and does not intend to do so in the foreseeable future, relying on price appreciation for investor gains [288]. - Future sales or issuances of common stock could lead to a decline in the market price of the company's common stock [286]. - The trading market for the company's common stock is influenced by analysts' opinions; adverse reports could lead to a decline in share price and trading volume [287].

Certain stocks are seeing incredible interest in today’s market, with Beyond Meat (NASDAQ:BYND) among the biggest winners right now. As of this writing, BYND stock is up more than 40% as investors price in some enthusiasm. This is certainly enthusiasm I did not see coming, I have to admit.A number of reports have pointed to Beyond Meat’s cost-cutting plans as driving most of the positivity around BYND stock today. The company has announced a strategic plan to boost its profit margins via a combination of co ...

Shares of Beyond Meat (BYND 42.55%) were sizzling on Wednesday, up by as much as 61.2% in early trading. As of 11:42 a.m. ET, the stock was still up by 44.1%.The catalyst that sent the maker of plant-based meat substitutes higher was the fourth-quarter report it delivered Tuesday after the close, which was something of a mixed bag.Mediocre resultsFor the quarter, Beyond Meat's net revenue declined by 7.8% year over year to $73.7 million. The bad news traveled down the income statement, resulting in a net lo ...

The shares of Beyond Meat Inc (NASDAQ:BYND) are surging after the open, last seen up 54.2% to trade at $11.60, after the alternative meat name last night announced earnings results. For the fourth-quarter, Beyond Meat beat revenue estimates, and said it would "steeply reduce" costs in 2024. There's ample room for a short squeeze, considering the 23.36 million outstanding shares account for 38% of BYND's total available float. At its current pace of trading, it would take shorts more than eight days to buy ...

Shares in Beyond Meat (NASDAQ:BYND) stock jumped 55% in pre-market trading despite a huge loss.Reporters focused on management promises to cut costs and revenues that came in ahead of estimates.But there may be a simpler explanation: a short squeeze. Fintel reports that 37% of BYND stock is now held short, including 58% of that held off exchanges. BYND stock opened this morning at $11.60 per share, a market capitalization of about $750 million.Squeezing Fake MeatBeyond Meat was a big deal five years ago, as ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Beyond Meat (NASDAQ:BYND) stock is on the rise Wednesday following the release of the plant-based meat alternative company’s earnings report for the fourth quarter of 2023.That earnings report includes revenue of $73.7 million for Q4 2023. That’s better than the $67.92 million in revenue that Wall Street was expecting for the quarter. Even if it’s down 7.8% year-over-year from $79.94 million.Beyond Meat notes that its revenue beat is thanks to increased international sales even as demand in the U.S. weakens ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...