Could an interest rate cut give the stock a boost? For a company such as Beyond Meat, which incurs losses and burns through cash, a lower interest rate makes it easier for the business to grow, because it can take out loans at a lower rate.
Let's evaluate Beyond Meat's struggle for profitability amid likely reduced sales and substantial cost-cutting efforts.
Beyond Meat (NASDAQ: BYND) was a high-flying stock before and after the pandemic as consumers saw its plant-based meat as a healthy alternative to traditional meat products. Admittedly, the move to plant-based meat substitutes appeared promising. With that, the company launched its initial public offering (IPO) in May 2019, and Beyond Meat's share price quickly surged beyond the $25 per share IPO price to over $200.