"Shares of the maker of plant-based meat substitutes Beyond Meat ( NASDAQ:BYND) exploded higher by over 1,300% in a few days before crashing back to earth, shattering the quick gains that traders hoped to hang onto. Now that shares of Beyond Meat are right back in the gutter, now off close to 77% from the monthly spike, many investors might be wondering if the hyper-volatile play has any more bullish energy left in the tank and if the latest dip (more like an implosion) is a buying opportunity to get in ahead of meme traders who might be inclined to give the name a second look with the hopes of getting in before another meme-esque spike."
"That's unprecedented volatility, and while the short sellers might have learned their lesson after the explosive boom in the stock, I wouldn't be all too surprised if the name continues to become a battleground between the shorts and meme traders hereon out. While I wouldn't be inclined to chase the stock with meme gain intentions, I do think that it's a terrible idea to go short, especially as the meme traders begin to go into hibernation for some unknown period of time."
Shares of Beyond Meat exploded over 1,300% within days before collapsing roughly 77% from the monthly peak. The stock's 2.34 beta reflects pronounced sensitivity and unprecedented single-day moves remain possible as news and trading frenzies unfold. The name has become a battleground between short sellers and meme traders, producing extreme intraday volatility that can inflict large gains or losses quickly. Long-term investors may find an opportunity despite company challenges, while shorting appears especially hazardous during episodic retail-driven spikes. Chasing meme-driven rallies is risky; a disciplined long-term value approach may better manage the wild price swings.
Read at 24/7 Wall St.
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