During big risk-off days in the stock market, normally its most speculative names get hit the hardest. Even that rule doesn’t apply to Beyond Meat (NASDAQ: BYND).
As markets got hammered by trade war fears on Monday, the newly public alternative meat company is shockingly beating the market, even teetering in positive territory occasionally.
Shares of Beyond Meat were briefly positive in morning trading. They only closed down 0.66%.
The Dow Jones Industrial Average plunged 760 points, while the S&P 500 dropped 2.9% and the Nasdaq Composite dropped 3.4% on Monday as investors worry a U.S. China trade ware is escalating. Last week, President Trump ended a tariff ceasefire with China when he announced the U.S. would levy tariffs of 10% on the remaining $300 billion in Chinese imports. China appears to be retaliating by letting its currency weaken below 7 yuan per dollar and halting its imports of U.S. agricultural products.
Beyond Meat’s stock is no stranger to outperforming the market. It has been a standout stock this year, surging nearly 600% since its initial public offering in May. The move has caused many to liken it to past bubbles in speculative stocks with a lot of hype, but not a lot of revenue yet.
Perhaps one reason why the shares are higher is that a lot of its revenue at this stage is domestically-focused, allowing it be immune from the trade war.
Verizon is one of the only Dow stocks that traded positive on Monday, largely attributed to its hefty dividend.