Key Points
Buying a stock at a lower price seems like a sound idea. People often equate buying the dip with getting a discounted price, like you would on an article of clothing.
However, while markets operate fairly efficiently, short-term thinking can unduly influence the stock price. Hence, the key question is whether the company’s long-term investing thesis remains intact.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Beyond Meat‘s (NASDAQ: BYND) stock has had a wild ride since its initial public offering (IPO) nearly six years ago. Down about 73% over the last year through Jan. 12, does this represent an attractive opportunity, or a warning sign to stay away?
It’s time to take a closer look at Beyond Meat’s business prospects.
Image source: Getty Images.
Once a highflier
Stock investors quickly became enamored with Beyond Meat’s business, meeting the IPO with a very favorable reaction. After going public at $25, the stock price quickly shot up to about $235 in a couple of months.
Beyond Meat, on the surface, has an appetizing business concept. It makes plant-based meat.
That seemingly appealed to consumers since the company tries to design its products to have the taste and texture of meat (beef, pork, and poultry) while claiming to offer a healthier and more environmentally friendly alternative.
Weakening fundamentals
However, delving into the company’s fundamentals, it’s clear something has gone amiss. Despite the product’s perceived advantages, Beyond Meat’s revenue has been dropping.
The company’s top line fell from $418.9 million in 2022 to $326.5 million in 2024. Things haven’t improved since then. Beyond Meat’s revenue for the first nine months of 2025 dropped 14.4% year over year to $213.9 million.
Notably, volume in its retail and foodservice channels (partnerships with restaurants and venues) dropped. That indicates that people haven’t clamored for its products, with consumers continuing to prefer traditional meat products.
The company has encountered resistance for a variety of reasons. These include questions about its products’ health benefits.
Management expects fourth-quarter revenue to come in at $60 million to $65 million, a 15% to 22% year-over-year decline.
Investment decision
Faltering revenue tells you everything you need to know. Unfortunately, this isn’t caused by a temporary downturn in the economic cycle. This has to do with customers turning away from Beyond Meat’s products.
The stock recently traded for less than $1 a share, reflecting the major challenges confronting Beyond Meat. That’s why equity market investors seem to have correctly priced in the high risks the company is facing.
With major threats to Beyond Meat’s underlying business, investors should steer clear of the stock.
Should you buy stock in Beyond Meat right now?
Before you buy stock in Beyond Meat, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Beyond Meat wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $477,544!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,122,686!*
Now, it’s worth noting Stock Advisor’s total average return is 952% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 15, 2026.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Beyond Meat. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
#Investors #Buying #Dip #Volatile #Stock