Shares of Beyond Meat Inc (NASDAQ: BYND) slid another 8.0% on Friday after Taco Bell said samples of Carne Asada made from its plant-based steak weren’t good enough to serve.
Sell the rip
BYND is now down more than 65% from its year-to-date high in late January, and Joule Financial’s Quint Tatro warns it’s not a “buy the dip” moment. On CNBC’s “Trading Nation”, he said:
Beyond is a good idea, but so far as an investment, it’s been horrible. Before investing in this, you have to wait for the fundamentals to play out. Going in any further at this juncture could be dangerous. The fundamentals aren’t there, the balance sheet is full of debt, and they’re not making money.
Earlier this year, Dunkin also discontinued Beyond’s sausage products at most of its U.S. stores. BYND was one of the stocks that benefitted greatly from the retail trading frenzy in 2021.
Technicals are just as ugly
During the same interview, Piper Sandler’s Craig Johnson agreed that fundamentals were ugly and warned that the technical side wasn’t looking any better either. Commenting on where the stock could find next support, he said:
It looks like expectations got too far ahead on the fundamental side. For me, the next support level will be at the March 2020 low of $55 a share. So, the fundamentals as well as technicals suggest there’s going to be more downside.
Out of 20 Street analysts that cover BYND, only two currently have a buy rating versus eight that are “underweight”. Last month, Beyond Meat reported weak results for its fiscal third quarter and gave dovish future guidance.
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