Out of Control
What a week on Wall Street. The market’s newest darling had both investors and vegetarians drooling… and analysts scratching their heads.
“The valuation, by any metric, is out of control,” said the founder of one Atlanta-based fund.
We’re talking, of course, about the high-profile IPO of Beyond Meat (BYND). Since debuting on May 2, shares of the “alternative meat” maker soared as high as 240%. (As the chart below reveals, the excitement was short-lived…)
It was the hottest IPO of 2019. But before you hit buy, you should understand the reasons behind this odd company’s rapid ascent… and inevitable drop.
Flipping Out Over Fake Meat
We once (jokingly) suggested that fake meat could be the cure for toxic masculinity. But what we should’ve been focusing on, it seems, is the potential of the plant-based food market.
Based on the rapid adoption of dairy alternatives, like soy milk and almond milk, industry experts think the “alternative meat category” could be worth some $40.5 billion in the U.S. within a decade.
It’s a massive figure, to be sure. Now investors are betting big that Beyond Meat will gobble up a significant chunk of that market as a first mover. It’s part of the reason the stock skyrocketed early this week, even as the broad markets took a dip.
But it isn’t the only reason…
Let’s not forget the key role technology played…
Who’s Really the Boss on Wall Street?
When institutions want to move fast on an emerging opportunity, they don’t get in line to submit their purchase orders like the rest of us. They employ high-powered computers to get the job done in microseconds.
Did you know that machines now make roughly 70% of trades each day? Possibly more. J.P. Morgan recently said it believes just 10% of all trades are traditional, “fundamental” trades.
Make no mistake… computers are in charge. They drive markets – and stocks like Beyond Meat – while making huge money for the folks behind them.
And if you know what to look for, you can take advantage of the situation for huge profits.
Technology Unlocks the Best Opportunities
It’s why we’ve had huge success with our newest trading system, Codebreaker Profits. (If you aren’t familiar, click here.) It relies on computers – and math – to spot the best opportunities to make money.
Since launching just over a month ago, we’ve scored gains of 64%… 94%… 133%… and, thanks to a big merger announcement, we just told readers to lock in gains of more than 70%.
We couldn’t be prouder.
It just proves that, as the markets become more technical in nature, to score the biggest gains, our trading strategy must follow suit. We’re confident there’s a whole lot more to come.
If you aren’t already using our one-of-a-kind system to make as much as 89% a day, click here now.