Beyond Profits

Today’s Chart of the Day shows the price of $100 invested in Beyond Meat, Inc. when the company went public in early 2019.

Shortly after it started trading, the stock grew to $940 due to the hype of being “first” and having a huge market share. It did better than the S&P 500 (in blue) until March of this year. Now, it is only worth $70 vs. the S&P value of $164.

When thinking about investing, in the long run, no matter how much you may like an idea and product, eventually companies have to generate a profit to justify their value. In this case, Beyond Meat, Inc. is losing money and one of the reasons is because only 5% of the population is vegetarian, and many of those are not in the market for a product that looks and tastes like something they have sworn against.