- Beyond shares shot up to 39 percent in New York, the largest intraday rise since June 2019.
- PepsiCo improved little Tuesday.
- GameStop stocks soars
Beyond Meat shares rose to a six-month high Monday after the company signed a collaboration agreement with PepsiCo to produce and sell fresh treats. The two businesses decided to create PLANeT Alliance LLC, a joint venture with Beyond Meat’s plant-based food processing technologies to exploit PepsiCo’s marketing.
Financial agreements were not disclosed.
“This represents another attractive longer-term driver for BYND to capture more share in the expanding plant-based food ecosystem,” Oppenheimer & Co. analyst Rupesh Parikh said in a note.
In recent years, as consumers interested in health seek to broaden or change their eating habits based on chicken, pork, and beef, plant-based meat substitutes, such as burger patties and sausages, have become increasingly popular.
Beyond Meat reported an unexpected loss in the last quarter, as demand for its products from restaurants and grocery stores began to decline after an initial spike at the beginning of the COVID-19 pandemic.
Beyond shares shot up to 39% in New York, the largest intraday rise since June 2019. In 2020, the stock grew 65%, boosted by more Americans cooking at home. PepsiCo improved little Tuesday.
By comparison, delivery inside retail stores quickly expanded, an environment where PepsiCo occupies a lot of storage room. Quaker Oats, Doritos chips, and Gatorade manufacturers will add their publicity, brand-building, and delivery weight to the collaboration, while Beyond provides its plant-based protein products to young customers.
Beyond Meat CEO Ethan Brown said:
“We are thrilled to formally join forces with PepsiCo in The PLANeT Partnership, a joint venture that unites the tremendous depth and breadth of their distribution and marketing capabilities with our leading innovation in plant-based protein. We look forward to together unlocking new categories and product lines that will inspire positive choices for both people and planet.”
He added, “PepsiCo represents the ideal partner for us in this exciting endeavor, one of global reach and importance.”
GameStop Stock Soars
About 128 million GameStop shares had changed hands by early afternoon Tuesday. Its annual trade value is below 19 million.
Ambitious buyers threw dollars and sale orders at GameStop stock—in clear contrast to a community of wealthy investors who depend on the stock price to drop.
This month’s stock price witnessed massive growth as a result of a variety of online market-watchers on Reddit, YouTube, and TikTok purchasing up huge quantities of stock thinking short-sellers pressured to purchase the stock at a future date will further push the price up.
Yahoo Finance claims GameStop orders were shorter in December than real outstanding GameStop market shares.
The outcome is wild: the stock of GameStop increases almost 145% in less than two hours on Tuesday night, only to see the profits rapidly vanish. In the last twelve months, the Grapevine, Texas-based firm has lost $1.6 billion and its shares decreased for six consecutive years before rebounding in 2020.
It could therefore seem like a strange place for so much movement. However, GameStop has been a target of many professionals who say the company will continue to establish itself as sales of games keep taking place online.
These shareholders hope that the supply of GameStop would decline. They shortened stocks, so they lent and traded them with the expectation of purchasing them back at a better price and pocketing the difference. Yet those bets have lately been catastrophic.