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Facebook / Beyond the meat
- Beyond the meat climbed up to 734% of its initial offer price.
- The latest gains were made in light of the company's expectations for its second quarter earnings.
- The stock broke the $ 200 per share barrier for the first time Tuesday, giving Beyond Meat a market capitalization of more than $ 12 billion.
- While badysts have a positive view of Beyond Meat, many are struggling to justify this stock market valuation of the new public company.
- Watch Beyond Meat's live trade on Markets Insider.
Beyond meat continues to grow ahead of second-quarter profits.
Shares of the newly-opened company climbed more than 7% early in the session on Tuesday, bringing gains after the IPO to 734%. The gains also allowed stocks to exceed the threshold of $ 200 per share for the first time.
These milestones come in optimism around Beyond's second quarter results are released on July 29th. The company is expected to largely exceed badysts' expectations, repeating the results of the first quarter of 2019.
When Beyond announced that it exceeded badysts' expectations in the first quarter, the stock rose more than 20%. Investors clearly hope that history repeats itself.
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However, the market value of the company, which exceeds $ 12 billion, puzzles some badysts on Wall Street. Of the nine badysts monitored by Bloomberg, eight have "conserved" ratings on the stock, while another has issued a "sale".
Although consumer sentiment towards society seems positive, many badysts simply do not think that beyond should be worth it. For context, its current market capitalization is about the same as that of Campbell Soup, which has been producing staples for US households for decades.
The stakes for Beyond are high, knowing that the herbal meat market could reach $ 140 billion over the next decade, according to a Barclays estimate.
At present, there are few other options for investors seeking to take advantage of plant-based meat, Beyond Meat being the first such company to be floated on the stock market. And while other more traditional companies, such as Tyson Foods, are embarking on herbal meat substitutes, these companies do not appeal to investors seeking to bypbad traditional animal proteins.
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