Beyond Meat Inc. experienced a dramatic surge in its stock price, reminiscent of previous meme stock phenomena. The company's shares soared more than 1,300% over four days, driven by day traders and social media buzz. On Wednesday, the stock peaked at $7.69, marking a 112% increase before reversing course and erasing those gains by early afternoon.

The rally began last Thursday when shares closed at just $0.52. The momentum intensified on Monday after a trader named Demitri Semenikhin promoted the stock on social media. This surge was likely fueled by short sellers covering their positions, as approximately 64% of the shares available for trading had been sold short by the end of September.

Roundhill Investments added Beyond Meat to its Roundhill Meme Stock ETF, signaling a resurgence of the meme stock trend that gained popularity during the pandemic. Matt Maley, Chief Market Strategist at Miller Tabak + Co. LLC, commented, "It’s definitely a sign that the level of speculation and froth in the market is still extremely high."

The stock's rally was further bolstered on Tuesday when Beyond Meat announced that Walmart Inc. would expand the availability of its products to over 2,000 stores. However, Wall Street analysts remain cautious about the company's future. Beyond Meat currently holds six sell-equivalent recommendations, five holds, and no buy ratings. Danni Hewson, head of financial analysis at AJ Bell, stated, "A deal to increase distribution is great if sales follow, but looking at consumer sentiment over meat replicas, it’s clear Beyond Meat has a huge mountain to climb."

The company, which once thrived during the pandemic as consumers sought healthier alternatives to meat, has faced challenges. Many consumers are now deterred by the high costs, excessive processing, and taste of plant-based products.

On Wednesday, Beyond Meat's stock fluctuated significantly, swinging between a 112% gain and a 28% loss, leading to multiple trading halts due to volatility. By early afternoon, the stock was unchanged from its previous close. Despite the recent fluctuations, shares remain above their levels from early last week, when the company announced a debt swap that would significantly dilute shareholder value.

Hewson added, "Beyond Meat could still turn things around, but that turnaround must be based on solid products that recapture the interest it initially enjoyed by tapping into current eating trends and delivering the kind of value for money that today’s shopper requires."