Beyond meat stock increases thanks to the PepsiCo partnership. What else could be behind the move.

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Beyond meat

the stock soared on Tuesday, after the alternative meat maker said it has partnered with

PepsiCo

– although there may be more to move.

Beyond Meat (ticker: BYND) and PepsiCo (PEP) have announced a new joint venture, The PLANeT Partnership, in which food manufacturers will “develop, produce and market innovative plant-based protein snacks and drinks.” The two companies hope to use Beyond Meat’s fake meat technology with Pepsi’s marketing and distribution infrastructure. Financial terms were not disclosed.

Beyond Meat, the stock jumped 25% to $ 198.33 in recent trading; Pepsi was 0.4% higher at $ 140.76.

Beyond Meat Stock is well known for having talked a lot about the news of partnerships with established food brands. Earlier this year, stocks jumped 14% thanks to Beyond’s deal with Yum! Brands’ (YUM) Taco Bell. At the end of 2020, the stock has climbed nearly 10% after the company said it was expanding its distribution with

Walmart

(WMT). Similarly, stocks faded 20% after

Mcdonalds

(MCD) announced its McPlant initiative because the company, consistent with past practices, has not confirmed that it uses Beyond Meat products.

However, there could be more than just excitement about the Pepsi news. With just over 38% of its stocks sold short – meaning positions that bet the stock will fall – Beyond Meat stock could be overtaken by the recent speculative trading frenzy that has engulfed popular bear trades. . In other words, investors could rush to reverse their bets on the fall of Beyond stock, otherwise known as the short squeeze.

GameStop

(GME) is the most recent child for this. Shares, which jumped another 17% in the recent check, have climbed 332% since the start of the year. This short-term squeeze has prompted bears to get creative, but it has spilled over into other high short-interest stocks as well.

Bed bath and beyond

(BBBY) is another example. It was hit with two downgrades today as analysts are unwilling to continue raising their target prices after stocks jumped more than 70% in just over three weeks.

With a rise of over 60% year-to-date, today’s jump, and high short-term interest, Beyond Meat appears to be a prime candidate to include in this group, although its agreement with Pepsi is ultimately profitable for the company.

Write to Teresa Rivas at [email protected]