Investors have lost their appetite for Beyond Meat.
The company's shares tanked on Tuesday after it warned of competitors entering the alternative meat space and a lockup period expired. The stock also failed to get a boost from a 250% increase in revenue and a turn to profitability.
Beyond Meat's CEO, Ethan Brown, said the company is not on the defensive – its goal is to continue to lead the market as new competitors step in.
"The consumer is looking for something new from somebody new. I think it's very hard for an incumbent to focus the way we do, to move as quickly as we do. We're very aggressive here in the United States, we're aggressive in the EU [and] we're aggressive in Asia. We have a single goal, we're not competing among different interests. So, my view is that as more entrants get into the market or raise awareness, we'll continue to lead it. That's what we're built to do."
Tim Seymour of "Fast Money" said the company has done a great job and is making exciting partnerships.
"They've talked about their ability to meet the demand. … They're going to certainly have to increase their expenses. That's something that would be concerning to people, but it shines a bright light on where valuations at some point just don't make sense. And I think that's what this is because there wasn't any new news today, in terms of the lockup or illuminating anything. The strategic partnerships are fine, they're exciting and the company's done a great job."
Steve Grasso of "Fast Money" said Beyond's success is in the lifestyle behind the product, not its health benefits.
"$239 high, back in July, was it a cult high? Was it about a social stock? We've all talked about it on this desk, that it's not actually healthier for you. So, it's not about health. It's about a socially conscious movement that we're making. So if it was about health, or if it was about just strictly fundamentals, I'd rather go with a Tyson -- it's up 53% year to date. That's a competitive market. They'll be in that market as well. "
Dan Nathan of Risk Reversal Advisors said that while some cashed out after the lockup, the company is still doing well.
"We've seen those things and they defy gravity and then they go the other way, too. And I'll just make one point. You know, on Friday's show, we were talking about this name in front of the lockup, and I made the point that they sold originally 11 million shares in their IPO $25 and then there was a secondary 3.75 [million] at $160. I was incorrect by saying that the company sold shares. That would have been brilliant to put that cash in their balance sheet, but it was selling shareholders and so when you think about what this lockup means this week, you might have seen some people sell at those levels up at $160 and less likely to sell somewhere in the $90s. Or, you know, you know, after these results that looked pretty good,"
Jim Cramer of "Mad Money" said that while Beyond Meat's CEO is confident, the demand is shrinking as competitors like Nestle are doing well in the meat alternative space.
"I feel bad for Ethan. I mean, you know, I like Ethan. … He came on this morning on 'Squawk.' He had a rap for everything. You could say anything to him and he had a rap. I love that guy, but it doesn't matter. There's too much Beyond Meat today. It's not Nestle."
