Shares of Beyond Meat jumped 49.7% in morning trading Wednesday after the maker of plant-based meat substitutes said it would cut costs and take other steps to boost its results amid sliding sales.
For the fourth quarter, the company said its loss widened to $155.1 million, or $2.40 a share. Analysts polled by FactSet expected a loss of 89 cents per share. Sales fell 7.8%, to $73.7 million. Analysts expected $66.7 million.
The company forecast revenue of $315 million to $345 million in 2024, compared with the $344.4 million forecast by analysts.
Adding to Beyond's gains might be a squeeze on short sellers, who have more than a third of the company's stock. Short sellers aim to profit by borrowing shares of companies that they believe are overvalued, selling them, and then buying them back at a lower price later. However, when a stock price rises, short sellers may look to manage their exposure to the stock by buying back the shares quickly, further inflating their price.
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