BYND Stock Tech Stock IPO
When you think of tech, you probably think of autonomous vehicles, social media platforms, or something to do with machine learning, the cloud, the Internet of Things, or any number of buzzwords that have passed through the lexicon over the years.
What you probably don’t think about is burgers. But Beyond Meat Inc (NASDAQ:BYND) might be the perfect tech stock for 2019, with BYND stock having been by far the strongest tech initial public offering (IPO) of 2019.
Let me explain: Beyond Meat isn’t actually a meat company. It’s a synthetic meat producer renowned for its “Beyond Burger,” a patty that’s made entirely without meat. And yet the company claims (and quite a few happy consumers also claim, I might add) that it tastes on par with a regular meat-based burger.
Being able to enjoy the taste of meat without having to hurt animals fills a much-needed hole in the food industry, especially as people grow more conscious of what they eat and how it is produced.
After all, how many videos have been leaked of the horrid conditions that many slaughterhouses keep their livestock in before the meat is processed? Couple that with the increased leaning toward vegetarianism and veganism across North America and Europe, and you have a product perfectly suited for its time.
And it shows.
Beyond Meat stock has skyrocketed 700% in roughly three months, with no signs of slowing down. The company has become the darling of the stock market in 2019, and in my mind, it’s the top tech IPO of 2019.
You see, BYND stock is considered a tech stock because the company innovates and is trying to—pardon the overused cliché here—disrupt the meat industry. The only difference is that it actually has the chance to do just that.
People are clamoring for the company’s products, and it has a number of large sponsors already. The A&W chain of fast-food restaurants has incorporated the Beyond Burger into its menu, as has the popular Canadian coffee and food chain Tim Hortons. I imagine many other fast-food restaurants will not be far behind.
Whatever the case may be, Beyond Meat stock has huge growth potential. In countries like India, for instance, where hundreds of millions of people do not partake of beef, the Beyond Burger could be a huge success.
And that’s what makes BYND stock the best tech stock of 2019 in my opinion; it recaptures what made tech stocks so exciting in the first place.
Beyond Meat Inc is a truly innovative company filling a need in the market that has so far been unserved, or at the very least under-served. The potential for Beyond Meat stock to grow for years to come is why so many investors are eager to get a bite.
And it bears comparison to the other, more traditional tech IPOs of 2019: Uber Technologies Inc (NYSE:UBER) and Lyft Inc (NASDAQ:LYFT). The ride-sharing app companies both went public in 2019, to a pretty tepid response.
Just look at this chart that shows all three stocks’ performances post-IPO.
Chart courtesy of StockCharts.com
One of these stocks is not like the others. As you can see in the above chart, BYND stock blows LYFT stock and UBER stock out of the water. And that’s because Beyond Meat has recaptured what made tech stocks so exciting in the first place: newness and innovation.
Ride-sharing was innovative years ago when it first hit the market. Since then, Uber’s market valuation ballooned to absurd heights, reaching beyond $100.0 billion at one point before it even made it to the public stock market (or even earned a penny in profit).
The hype built up for so long that it was practically impossible for Uber to live up to expectations. And we’re seeing the result of that long-overdue hype play out on the stock market.
While both Lyft and Uber have a chance to rally in the future, the present belongs to Beyond Meat. And that’s because the company hit hard and fast and was able to parlay the excitement around it into immediate gains on the stock market.
And unlike a company like, say, Tilray Inc (NASDAQ:TLRY), which also saw a massive jump in stock value right out the gate, Beyond Meat stock has the ability to sustain its growth for a long time, precisely because there’s so much room left in the market for the company to explore.
Tilray stock’s initial rise was based virtually all on hype, with little hope of the company becoming the dominant force in marijuana—largely due to the market already being overrun with pot companies. In contrast, BYND stock is the lone publicly traded stock in the meat-alternative space at the moment.
And I’m not alone in that thinking. Beyond Meat Inc has a market cap of roughly $12.1 billion, and investors seem to be on board with that. Only about 15% of Beyond Meat shares available for trading are sold short. (Source: “Beyond Meat’s stock surges to all-time high,” CNBC, July 23, 2019.)
Considering the massive growth in the BYND share price we’ve seen right out the gate, 15% being sold short really isn’t all that much.
And the U.S. is becoming a more animal-friendly country. According to market research company The NPD Group, Inc., 18% of Americans have been attempting to consume less meat. (Source: Ibid.)
That’s a whole lot of consumers who may be interested in seeing what Beyond Meat has to offer.
And that’s another exciting part about Beyond Meat stock; burgers are just the beginning. If the company can use its innovative technology to create substitutes to chicken, pork, and other meats, then we could be witnessing a food revolution.
Food is a great business to be in, seeing that every human is a consumer. It’s one of the few products that literally every living, breathing person needs.
The next big event on BYND stock’s horizon is the company’s second-quarter earnings report, which is set to be released on July 29. Analysts surveyed by Refinitiv, a provider of financial market data and infrastructure, expect Beyond Meat to post a loss of $0.08 per share on revenue of $52.7 million.
After the company’s previous quarterly report, the stock gained 23% in extended trading.
Tech stock IPOs are some of the most exciting opportunities for investors—when done right. In Beyond Meat Inc’s case, it was done very right.
BYND stock hit the market when there was a lot of hype, excitement, and confidence in what the company was offering. And, as mentioned earlier, it’s pretty much the only publicly traded stock from the meat-alternative sector right now.
Beyond Meat has huge growth potential, so a lot of investors are excited about the future of this stock. The overall package is a top tech IPO that saw BYND shares gain 700% in a few short months.
While I doubt we’ll see another 700% gain from Beyond Meat stock in the next three months, I believe the stock has the ability to grow for years to come and make many long-term investors very happy.