What happened
Shares of Beyond Meat (NASDAQ: BYND), a leading maker of plant-based meat substitutes, fell 28.3% in May, according to data from S&P Global Market Intelligence.
While the company turned in a weak first-quarter report mid-month, the stock was already down considerably in May before that event. The stock has been moving lower for some time, driven primarily by a string of disappointing quarterly results.
For context, in May, the S&P 500 index was barely in the green with a 0.2% return, while the tech-heavy Nasdaq Composite edged down 2%.
After having a great 2020, Beyond Meat stock is in its second year of significantly underperforming the market. In 2022, shares are down 61.5% through June 3, while the S&P 500 and Nasdaq indexes are underwater by 14% and 23%, respectively.
Market dynamics have almost surely hastened the stock's decline because highly valued so-called "growth stocks" have been out of favor this year as a result of investors' macroeconomic concerns.
On May 11, Beyond Meat released its first-quarter report. While both revenue and earnings missed Wall Street's estimates, shares only fell 4.2% the next day. That's probably in part because the disappointing results didn't come as much of a surprise to many investors.
What happened Shares of Beyond Meat (NASDAQ: BYND), a leading maker of plant-based meat substitutes, fell 28.3% in May, according to data from S&P Global Market Intelligence.
While the company turned in a weak first-quarter report mid-month, the stock was already down considerably in May before that event. The stock has been moving lower for some time, driven primarily by a string of disappointing quarterly results.
For context, in May, the S&P 500 index was barely in the green with a 0.2% return, while the tech-heavy Nasdaq Composite edged down 2%.
After having a great 2020, Beyond Meat stock is in its second year of significantly underperforming the market. In 2022, shares are down 61.5% through June 3, while the S&P 500 and Nasdaq indexes are underwater by 14% and 23%, respectively.
Two Beyond Burgers with cheese, a white sauce, greens, and onions in buns. © Getty Images Two Beyond Burgers with cheese, a white sauce, greens, and onions in buns. So what Beyond Meat stock's May drop is largely due to the continuation of its downward momentum, as previously noted. But there's another reason: market dynamics.
Market dynamics have almost surely hastened the stock's decline because highly valued so-called "growth stocks" have been out of favor this year as a result of investors' macroeconomic concerns.
On May 11, Beyond Meat released its first-quarter report. While both revenue and earnings missed Wall Street's estimates, shares only fell 4.2% the next day. That's probably in part because the disappointing results didn't come as much of a surprise to many investors.