Beyond Meat Rocketed 128% in a Day. Then it Crashed—Is it the Next Big Meme Stock?

Plant-based meat substitute maker shares Beyond the meat (NASDAQ:BYND) soared more than 1,300% in a few days before falling back to earth, shattering the quick gains traders had hoped to hold on to. Now that Beyond Meat stock is back in the gutter, now near 77% of the monthly peak, many investors might be wondering if the hypervolatile play has more bullish energy left in the tank and if the latest dip (more akin to an implosion) is a buying opportunity to get ahead of meme traders who might be inclined to give the name a second look in hopes of getting in before another meme-like spike.

Without a doubt, Beyond Meat stock has been a playground for traders, and with a beta of 2.34, the stock might be too much for most newcomers to the market. Despite the wild trading activity, I think Beyond Meat stock is also pretty decent as a long-term value investment, despite the avalanche of problems the company is facing. Perhaps that’s the best way to take advantage of those turbulent Beyond Meat shares, especially given the likelihood that future news could cause double or even triple-digit percentage moves in a single day.

This is unprecedented volatility, and while short sellers might have learned their lesson after the explosive stock boom, I wouldn’t be too surprised if the name continues to become a battleground between short sellers and meme traders. While I wouldn’t be inclined to chase stocks with meme intentions, I do think it’s a terrible idea to go short, especially when meme traders start going into hibernation for an unknown period of time.

As we discovered with the actions of GameStop (NYSE:GME), heavily shorted meme stocks may experience resurgences after their original booms. As such, no short seller is safe, even when it comes to the companies with the worst financials in the world.

Personally, I’m a fan of the Beyond Meat product and think meme stocks would be worth keeping in the speculative part of the portfolio. Just don’t expect a meme surge anytime soon and Beyond Meat could be something that really helps scratch the speculation itch while also giving you a ticket to some really deep value, especially if management can turn the corner, either by limiting the cash bleed or finding a way to drive sales again, whether through strategic partnerships, new innovations, or simply updating existing products to make them taste better.

Either way, the alternative meat space has gotten pretty competitive over the years, but with some easier comparables on the way and a plan that might actually be worth backing for serious long-term investors, there’s something to be constructive about here.

And of course, there’s also the possibility of future short squeezes now that the name has caught the attention of the legendary WallStreetBets crowd, who might be just as hungry for some Beyond Meat chicken strips as they are to bring them to the short-selling crowd. In any case, long gone are the days when it was easy to make a lot of money by short selling bankrupt companies.

It is arguably better to look for value in beaten down names as they are trading at rock bottom prices with expectations that have essentially been put in the ground. While cigarette butt investing may be out of fashion on Wall Street, I have to say that Beyond Meat intrigues me and the potential for a short-term squeeze has nothing to do with it.