US Beyond Meat shares rocket in public offering
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Jamie in Chile
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Wow, Beyond is now valued at about $4 billion even though its revenue last year was under $100 million. That's a ratio of >40. For typical companies, that ratio is, I think, 1 or 2. That means that investors not only think that this company is going to grow, they think it will grow massively. They think its future annual profits will be much higher than its current revenue.
Let me put it this way. If you had seen the future and knew this company's sales would double next year and double again the year after, and then stabilize, you should definitely not invest in this company. In such a scenario, you would lose big time. Investors are betting it will at some point reach revenue at least 10-20x higher than its 2018 revenue of $87.9 million and become a company with sales in the billions of dollars. If the investors are right, then this is great news because it means the company will by replacing a lot of factory farming. They will have to sell hundreds of millions of burgers, or other products, each year in order to meet the current valuation. (Perhaps not this year or next, but at some point.)
The money they've raised from the IPO should free up money to invest in new production facilities and distribution networks and will, if the price stays at this level, allow them to greatly increase the international sales of the burgers and other products in the next 2 years. It would be great to see a factory in the UK, another in Europe etc etc. Local production would make the burger even more ethical from an environmental (mainly carbon emissions) standpoint.
I actually ate this burger in September and some while after that emailed the company and asked to invest in it. I've never even invested in an individual company before, but this was obviously a game changer. I knew it the second I bit into the burger. They gave me some very high figure as a minimum investment for private investment before the shares went public, which was way out of my league. So I am pretty annoyed right now. The company is worth at least three times now what it was some months ago when I contacted them.
I was actually planning to invest after the launch if the shares stayed near $20. But, it's annoying that some bigshots got to buy in at about $20 per share per IPO, leaving people like me to have to pay more than double that or not get in.
The share price is scary high now. I won't buy at that price. I think you need to be a professional and have done some serious research to know whether to buy at that price. If it comes back down to $20-$30 region I might have another look at it. Let's see what happens in the next day or two. It looks so high right now I could at least see it falling back a bit tomorrow.
This company is now going to need to get some lawyers. Some years from now I can see intellectual property lawsuits when companies try to copy what they've done.
Let me put it this way. If you had seen the future and knew this company's sales would double next year and double again the year after, and then stabilize, you should definitely not invest in this company. In such a scenario, you would lose big time. Investors are betting it will at some point reach revenue at least 10-20x higher than its 2018 revenue of $87.9 million and become a company with sales in the billions of dollars. If the investors are right, then this is great news because it means the company will by replacing a lot of factory farming. They will have to sell hundreds of millions of burgers, or other products, each year in order to meet the current valuation. (Perhaps not this year or next, but at some point.)
The money they've raised from the IPO should free up money to invest in new production facilities and distribution networks and will, if the price stays at this level, allow them to greatly increase the international sales of the burgers and other products in the next 2 years. It would be great to see a factory in the UK, another in Europe etc etc. Local production would make the burger even more ethical from an environmental (mainly carbon emissions) standpoint.
I actually ate this burger in September and some while after that emailed the company and asked to invest in it. I've never even invested in an individual company before, but this was obviously a game changer. I knew it the second I bit into the burger. They gave me some very high figure as a minimum investment for private investment before the shares went public, which was way out of my league. So I am pretty annoyed right now. The company is worth at least three times now what it was some months ago when I contacted them.
I was actually planning to invest after the launch if the shares stayed near $20. But, it's annoying that some bigshots got to buy in at about $20 per share per IPO, leaving people like me to have to pay more than double that or not get in.
The share price is scary high now. I won't buy at that price. I think you need to be a professional and have done some serious research to know whether to buy at that price. If it comes back down to $20-$30 region I might have another look at it. Let's see what happens in the next day or two. It looks so high right now I could at least see it falling back a bit tomorrow.
This company is now going to need to get some lawyers. Some years from now I can see intellectual property lawsuits when companies try to copy what they've done.
That is, indeed, pretty impressing!
Happy that the IPO went so well.
Beyond Meat is going public. Meat alternatives are going mainstream.
Happy that the IPO went so well.
Beyond Meat is going public. Meat alternatives are going mainstream.
I'm so hoping this news is why they've flown off my discount stores shelves! I went for the sausage- they had 3 boxes of brats left, no Italian, no burgers. They've only recently started carrying them- the burgers are $5, sausages $6.99, less than other stores. I got two brats just in case 
They made the best pizza and hoagies I've had in years. Truly my number one craving!
They made the best pizza and hoagies I've had in years. Truly my number one craving!
