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.
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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.