Meme stock traders believe that the plant-based food brand Beyond Meat is “the most shorted stock in the market,” echoing sentiments from 2021’s GameStop phenomenon.
With that perspective gaining steam, BYND stock has now surged 963% over the past five days, according to TradingView. Nasdaq has already halted trading four times on Wednesday due to volatility.
Reddit users and X posters have started to rally behind the food company in a cult-like fashion, outlining their investment thesis for BYND. It ultimately boils down to traders believing the stock is oversold and over-shorted, judging by Beyond Meat’s prevalence in the food industry, along with hopes that they can replicate the mania of the GameStop short squeeze.
“FULL PORTED MY LIFE SAVINGS INTO BYND,” one Reddit user posted on WallStreetBets. “EVERYONE INVEST YOUR LIFE SAVINGS RN,” another replied. “I don’t normally encourage this kind of thing, but I’m rooting for you kid! Fuck the shorts,” a Redditor added.
Beyond Meat is a major plant-based food producer stocked in 65,000 retail outlets across the globe. It is also used by fast-food chains like McDonald's, KFC, and Pizza Hut for their vegan offerings.
BYND’s stock price is down 85% from its all-time high, per TradingView. Its short interest peaked at 82% on Monday before dropping to 71% on Tuesday, according to data analytics firm Ortex. This is what has led many investors to believe it is one of the most shorted stocks in the market.
Short sellers were a major factor in 2021’s GameStop mania, as meme stock traders grew angry that hedge funds were able to suppress the price of a stock—and one that some investors viewed as a beloved, nostalgic brand. Retail traders signed up to trading platforms like Robinhood to buy up the stock, which sent the price of GME skyrocketing.
In the case of BYND, this feeling has been amplified in part due to former hedge fund founder and controversial businessman Martin Shkreli—aka the “Pharma Bro”—publicly opening a short.
“He just added fuel to the fire,” an X user reacted. “Hey, retail, let's show him what time it is,” another posted.
Unfortunately for Shrekli, BYND has surged 57% since the market opened on Wednesday.
From the GameStop phenomenon, content creator Keith “Roaring Kitty” Gill emerged as the leader of the cult due to his unwavering support for the stock. His presence was so important, in fact, that he testified on Capitol Hill following the short squeeze and was the subject of a 2023 film called “Dumb Money.”
