Is Beyond Meat overvalued?

At the time of writing this blog post Beyond Meat (BYND:NASDAQ) share price is $222.

The Los Angeles based vegan meat substitute producers went public on 2nd May 2019. Soaring from its opening IPO price of $25 to $65.75 (163% increase) by the close of their first day on the stock markets.

Is it time to short sell Beyond Meat?

Ridiculous Market Cap: They are currently valued at $13bn, which is widely considered overvalued.

Widening Net Loss: Beyond Meat’s net loss was $9.4m, in the second quarter of 2019 in comparison to a loss of $7.4m in the previous year.

Additional share offering: The company are also issuing up to 3m additional share, which could lead to dilution of share of existing some shareholders.

Lockup expiry date looming: The capital lock up expiration date is fast approaching. This would allows for early investors to sell their stake in Beyond Meat on 29th October 2019.

Final thoughts

Time will tell the fate of Beyond Meat but in the short term all signs lead to a major correction to a more sensible (and lower) share price.

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