Beyond the meat is it intended for a big correction?

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The hype surrounding herbal burgers has been sent Beyond the meatof (NASDAQ: BYND) stock soaring this year, more than doubling since its IPO in May. However, some cracks are beginning to appear in this stock that was flawless and it dropped nearly 20% last month. As deplorable as it may be, it would not be surprising to see even more sales unfold. "Data-reactid =" 11 "> The hype surrounding herbal burgers has been sent. Beyond the meatof (NASDAQ: BYND) stock soaring this year, more than doubled since its IPO in May. However, some cracks are beginning to appear in this stock that was flawless and it dropped nearly 20% last month. As bad as it was, it would not be surprising to see even more sales unfold.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Why the bubble may have already exploded"data-reactid =" 12 ">Why the bubble may have already exploded

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Beyond Meat products have been considered as a game- Its meat-free products are an option for vegetarians who wish to enjoy the same indulgences as meat eaters, without guilt, and even if the choice remains very popular, the problem is that more attention is paid to the hamburgers themselves. and they're really better than the meat for the eater.The verdict has not come out yet, but until now everything indicates that Beyond Meat's products are not healthier than meat at all, which could have a devastating effect on the long-term growth prospects of the company. "data-reactid =" 13 "> Beyond Meat products have been considered a decisive element for the food industry, and its meat-free products are an option for vegetarians Although the choice is still popular, the problem is that we pay more attention to the burgers themselves and to the question of whether they are really better than the meat for the eater.The verdict has not yet been pronounced, but up to Now, all indications are that Beyond Meat's products are not healthier than meat, which could have devastating effects on the company's long-term growth prospects.

Image Source: Beyond Meat

Beyond meat, hamburgers are more expensive than regular beef patties, with a selling price of up to $ 12 per pound, compared to $ 5 for beef. If they are not healthier, they will be harder to sell for potential consumers. the barrier. Although herbal patties may still be of interest to consumers who choose not to eat animal products, this is a much smaller subset of the market. There would have been much more growth potential if the products were considered a healthier option for meat.

Instead, Beyond Meat's product market may be much more limited and for many consumers, patties may not be worth the extra cost. This could be a hard blow and unsurprisingly, investors have begun to calm their enthusiasm for the title.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "There is a lot of competition and more on the way"data-reactid =" 28 ">There is a lot of competition and more on the way

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Another reason why the stock is not not so attractive is that it also does not have the gap to justify such a premium on the price of its action.There are no significant barriers to entry that prevent competitors to enter the space and market more tasty products available this year at Burger King stores, manufactured by Impossible Foods, as well as Lightlife hamburgers, owned by Maple Leaf Foods & nbsp;(TSX: IMF) that have made their way into grocery stores in Canada and the United States including Amazon & nbsp;(NASDAQ: AMZN) & nbsp;Whole foods. Meanwhile, the giant of the industry Tyson Foods (NYSE: TSN) is product launch use pea protein to prepare chicken nuggets, in addition to mixed burgers, which will include Angus beef. "data-reactid =" 29 "> Another reason why broth is not so appealing is that it does not have Angus beef, Moat needed to justify it. such premium over the course of its action because nothing prevented competitors from entering the market and marketing more tasty products.The Impossible Whopper will be available this year on Burger King's sites It is also manufactured by Impossible Foods, as well as Lightlife burgers owned by Maple Leaf Foods (TSX: IMF) that have made their way into grocery stores in Canada and the United States including D & # 39; Amazon (NASDAQ: AMZN) Whole foods. Meanwhile, the giant of the industry Tyson Foods (NYSE: TSN) introduces pea protein products for chicken nuggets, in addition to compound hamburgers, which will include Angus beef.

These are just a few examples of the competitors that Beyond Meat will face. And as the popularity of herbal products grows, the interest of other companies seeking to produce a product that may deprive them of a market share will also grow. Restaurants and stores have already partnered with brands, and the other risk is that the industry may become very fragmented. Although Beyond Meat has already signed several contracts, much more needs to be done to justify its high price.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "His assessment is through the roof"data-reactid =" 31 ">His assessment is through the roof

At the moment, Beyond Meat's stock trades at 26 times its book value, a considerable multiple in every respect. The company is not yet making a profit and shares are trading at a multiple of more than 50 times its sales. Although Beyond Meat sometimes benefits from a free pass due to the growth it offers, investors should consider that, by comparison, Amazon trades at a much more modest value of 17 times its book value and at less than four times its sales.

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