Goodmorning and Happy Saturday everyone!

I have to admit, it feels dramatically better writing this weekend story after a nice Friday closing. Amirite?

(Source: Giphy)

Especially considering that at the beginning of the week, Wall Street, and most investors were eyeing the Sahm rule harder than my kid brother’s obsession over the “Hawk Tuah” girl. 

However, as the market sentiment shifted after Thursday’s new labor market data showed us just how dramatic Wall Street logic 101 is (Read: Things may not be that bad) - the market’s ended on a two day Fireball streak with the Nasdaq leading +0.51% on the day, followed by the S&P 500’s and the Dow’s upticks of +0.47% and +0.13% respectively.

(Source: CNBC)

The Russell 2000 on the other hand, decided to be that one friend who can't hold their Fireball liquor, stumbling down -0.17% on the day.

But still, with that said, while the market’s sharp sell-off gave us quite the scare earlier this week, it’s become evident that sometimes, it pays to be the biggest loser. And when it comes to this week’s price action, Beyond Meat was paid pretty dayum well (for a quick minute). 

(Source: Giphy) 

You see, when it comes to the twisted world of Wall Street and earnings, you don’t have to be good, you just have to suck less than people thought you would. That’s it…

And while Beyond Meat, the fake plant-based meat company, just posted its ninth straight quarter of year-over year revenue declines, it still beat analysts expectations. “Lmao, how?” - you ask? 

(Source: Reuters)

Well simply put, it took a page out of Starbucks playbook, and price hiked the sh^t out of its products (See: Boosting sales volume is overrated). For instance, revenue came in at $93.2 million for Beyond Meat, slightly down from last year, but, but, but, better than the $81.8 million that analysts predicted. 

Earnings per share, was also good (ironically), as the company was right on par with analysts as it posted a -0.53 cents per share on revenue. 

(Source: Seeking Alpha) 

However, the real star of the show, that came from Beyond Meat’s price hikes and cost-cutting, was the company’s gross margin of 14.7%, the highest they’ve seen since 2021. This had Beyond Meat’s CEO, Ethan Brown, out here like a chef on a budget, trimming the fat and adding a sprinkle of optimism as he’s betting on their new, healthier products to win back the consumers who think their current products are about as appetizing as cardboard. (Wait, I thought fake meat was already healthy?) 

(Source: Giphy) 

Now of course, while Brown’s strategy may simply just be less discounting, and more avocado oil - his optimism is weirdly infectious. With the company’s new sausage fest not even pretending to be meat, the CEO claims they don’t need everyone to love their products - they just need enough people to keep the ship afloat. “Solid strategy for ‘em Cotton, let’s see how it plays out for ‘em”. 

(Source: Giphy)

But in light of the poor, but better than expected financial numbers for the company, the real story lies in the stock. As Beyond Meat came out putting a whole new meaning to a “good earnings report”, this had investors and meme-stock regards swooning over the stock as it took off like a rocket soaring over 70% through Thursday and Friday. Talk about turning something into nothing.

(Source: Yahoo Finance) 

Ultimately though, the stock didn’t keep the bullish sentiment for long, as it gave back 53% of its gains. However, with a massive 38.84% short interest on Beyond Meats float right now, there’s no telling how far it can run going into next week’s trading. 

So given all of this, what’s the takeaway here when it comes to investors?

Well, while the earnings numbers left investors scratching their heads, as the company strides towards making their less appealing products more expensive, the stock is clearly screaming short squeeze vibes. 

(Source: Giphy)

Sure, the fundamentals are shaky, but with Beyond Meat modestly revising its full year revenue forecast from $320 million to $340 million, there may be some more meat (pun intended) on the bone to get shorts buying out. But as always, in a world where perception is reality, every little bit counts. The company’s future hinges on changing consumer perceptions and proving that plant-based doesn’t have to mean tasteless. (Sorry, it's never going to happen for me tbh). 

(Source: Giphy) 

So with that said, keep an eye out for this meme stock as we make our way into Monday’s opening bell. The stock clearly has volatility behind it, and a weird, yet satisfying dose of momentum. Plus, with an average of 8.8 days for shorts to cover their positions, sh^t could get even more wild for Beyond Meat’s stock next week. 

Until then, don’t get your hopes up, but don’t sleep on this situation either. Stay frosty, friends! 

Stocks.News does not hold any positions in companies mentioned in the article.