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.
Samuel serves as Senior Vice President, Chief Investment Officer for the Crews family of banks. He manages the individual investment holdings of his clients, including individuals, families, foundations, and institutions throughout the State of Florida. Samuel has been involved in banking since 1996 and has more than 20 years experience working in wealth management.
Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.