Meat is no longer trendy, which a company like Beyond Meat is proving. After the IPO, their shares immediately rose more than 160%. But how can you profit from investing in Beyond Meat? Where can you buy and sell Beyond meat shares and what should you look out for when trading this company’s shares. You will read all about it in this article!
In short: what does Beyond Meat do?
Beyond Meat is a company that produces meat substitutes. Beyond Meat has proven very successful in doing this. The taste of, for example, the beast is almost indistinguishable from real meat. Yet this burger replacement is made from completely plant-based products such as coconut oil and pea protein isolates. But how can you actually invest in Beyond Meat and does this company really hold the future?
Invest in Beyond Meat
You can easily invest in Beyond Meat through various online brokers. Broadly speaking, you have to choose between two different ways of investing.
The price of the Beyond Meat share is very volatile. The price has risen enormously and the probability of large price movements up and down in the future is therefore quite large. When you want to take full advantage of this, it can be attractive to use derivatives. Derivatives allow you to trade both long and short.
If you really have faith in Beyond Meat, you can also choose to buy the shares physically. You can do so through an online broker. It is important to choose a good broker for buying Beyond Meat shares, because the transaction costs can vary considerably per broker. Use the button below to directly compare the best brokers:
The future perspective
The future perspective of Beyond Meat is rather bright. That is, if they manage to actually make some money at some point. Beyond Meat has never made a profit since its launch. Yet, it is clear that an ever-growing group of people are opting to turn their back on real meat. Considering that meat is a major contributor to climate pollution, this is not an unexpected development. In addition, eating less meat is also good for your health.
Not eating meat and becoming a vegetarian instead is getting increasingly popular, and more and more people choose meat substitute instead of real meat. In fact, the products that Beyond Meat produces nowadays are hardly distinguishable for actual meat, both in taste, texture and looks. Beyond Meat has succeeded very well in reproducing different types of meat. In addition to the aforementioned “the beast”, for example, the company has also introduced vegetarian sausages and chicken. Even though the taste of Beyond Meat’s products is excellent, this does not necessarily imply that buying Beyond Meat shares is an excellent idea as well.
Should you buy Beyond Meat shares?
A common mistake among novice investors is that they buy a stock because they like the company. Obviously, Beyond Meat is a very sustainable company with promising technologies. Investing in this type of company does not harm your conscience. However, this does not necessarily mean that buying Beyond Meat shares is also good for your return. There are some considerations you have to take into account when investing in Beyond Meat.
For example, it is important to report that the company has never made a profit. Overall, the company is still relatively small. For example, in 2018 it had a turnover of $ 87.9 million and a loss of $ 28.7 million. At the time of writing, the value of Beyond Meat is a few billion dollars. Hence, the current valuation is indicative of a hype or bubble. A fast food chain such as Wendy’s is also worth a few billion dollars but has a positive net profit of nearly $ 150 million.
Another major risk for Beyond Meat is the fierce competition. More and more companies are starting to produce meat substitutes. Even companies that traditionally only produced real meat are exploring opportunities of meat substitutes. It is therefore questionable whether Beyond Meat will be able to stay alive between the fierce competition.
Beyond Meat obviously still has a lot of potential. The growth rates are above 100% and the company is also supported by famous people such as Bill Gates and Leonardo DiCaprio. Even the previous managing director of McDonalds previously took an interest in the company.
Currently, Beyond Meat is likely to be overvalued. This does not mean that you cannot make money by trading its stock. With CFDs you can benefit both from price increases and decreases. If you want to learn more about how to trade actively with CFDs, check out our free CFD trading course.