In 2021, the bulls became pigs when they ignored the looming threat of inflation and rising interest rates. Two such stocks are the online lender Upstart (NASDAQ: UPST) and the plant-based meat producer Beyond Meat (NASDAQ: BYND), which still had 31% and 35% of their outstanding shares, respectively, being shorted as of Jan. 12. Upstart's artificial-intelligence (AI) powered lending platform helps banks, credit unions, and auto dealerships approve loans with nontraditional data points like a person's education, grade-point average, standardized test scores, and work history.
Shares of Oatly may be down more than 88% since its IPO in 2021, but one analyst expects the plant-based beverage giant to see a turnaround in 2023.
As you might expect, these poor sales trends sparked big financial losses. With a lower cost base by late 2023, Beyond Meat could start generating significant earnings -- assuming the industry returns to steady growth.