A short squeeze rally boosts Beyond Meat’s stock price by 1,200% this week
by VT Markets
/
Oct 23, 2025
Beyond Meat, a company that sells plant-based meat alternatives, saw its stock price jump nearly 1,200% this week. It reached about $8.70 per share, up from just 67 cents last Friday. This big increase was mainly due to a short squeeze. However, by Wednesday afternoon, the stock price had dropped to around $3.35 per share, which still represents a 400% rise for the week.
The recent changes in the stock resemble a meme stock rally caused by a short squeeze. Last week, Beyond Meat hit a low of 55 cents per share after announcing debt restructuring. Shareholder dilution and analyst downgrades led many investors to short the stock. The rally began when Beyond Meat expanded its distribution with Walmart and got added to the Roundhill MEME Stock ETF, pushing the share price up quickly.
Beyond Meat has struggled to make a profit. In the second quarter, its revenue was $75 million, a 20% drop from last year, along with a net loss of $29 million. The stock’s wild price swings have made investors cautious, as they await more clarity from the upcoming Q3 earnings report.
We are witnessing a typical short squeeze with Beyond Meat, driven by its inclusion in a meme stock ETF and the new deal with Walmart. Even though the stock jumped 1,200% this week before declining, implied volatility for its options is now extremely high. This makes it costly to buy calls or puts since the premiums reflect significant uncertainty.
Given this situation, traders are more likely to try selling this inflated volatility instead of buying it. Strategies like selling covered calls against existing shares or using bear call spreads might be appealing for betting that the stock won’t hit its recent highs again. This allows for potential profits from the expected decrease in both time and volatility as the excitement dwindles.
The company’s fundamentals suggest a cautious approach, as it remains unprofitable with revenues down 20% in the second quarter. Historically, short interest in Beyond Meat has been very high, with over 40% of its free float sold short earlier this year. This significant betting against the company contributed to the squeeze but also underscores ongoing business challenges.
One important date to note is the earnings release on November 4th, which is now less than two weeks away. We can expect continued volatility leading up to this event, creating an uncertain outcome for the stock price. This creates an opportunity for short-dated options plays that aim to profit from the expected post-earnings volatility drop.
Beyond Meat Stock Price Movement
