Beyond Meat has become one of the most shorted companies on the US stock market as investors fret over weaker sales and scepticism grows over the plant-based meats boom.
Short-positions on Beyond Meat shares have increased 40 per cent since late October, when the California-based company issued a revenue warning. A few weeks later the group reported lower than expected third quarter sales and slashed revenue guidance for the following quarter.
Since then, short sellers, who make money on share price falls, have piled into the stock. Bearish bets accounted for 42 per cent of Beyond Meat’s freely traded shares as of January 10 — the highest ratio in the Russell 1000 index of the biggest US-listed companies, according to specialist data provider S3 Partners.