I was shocked to see BYND shares drop lower than most people’s dating standards in February.
Its price per share dipped below its IPO price. Beyond Meat has signs of a super successful startup.
-> Celebrity ambassadors: Leo DiCipario | Chris Paul | Snoop Dogg | Kevin Hart
-> Forecasted Revenue of USD $560Mn and $620Mn in 2022
So why is their stock tanking and resembling my high school math exam scores.
-> They’re burning a lot of cash, think Joker from Dark Knight. Ok, not that much and not that diabolically. But you get the idea; they’re going through a lot of cash.
-> Their margins are 0.2%. That’s bad, like worse than my high school math exam score bad. And that’s saying something.
They’ll most likely have to raise money to stay afloat. But even investors can’t miss all these red flags, and they’ll ask more difficult questions than ICE asks fleeing refugees.
So what can startups learn from Beyond Meat?
-> Just because your product is popular DOES NOT mean you’ll always be profitable. Nothing is permanent. Take nothing for granted.
-> Keep an eye on your cashflow and address those problems or you’ll be in serious trouble