Meme stock rallies have become commonplace in the US market lately, and the latest beneficiary of this trend has been Beyond Meat, a stock that has gained more than 1000% in the last five trading sessions, reports BBC.
The unprecedented rally comes even as the company struggles with sluggish sales, with Beyond Meat having yet to report a quarterly profit in over five years.
The spectacular rally over the week briefly saw the share price above $7 on Wednesday before closing down about 1% at roughly $3.60 amid volatile trading.
The rally in Beyond Meat, which produces and sells vegan meat products, started last week, marking the start of a stock movement reminiscent of rallies of GameStop and AMC in the past.
Momentum increased after Roundhill Investments added the company to its meme stock exchange-traded fund (ETF) on Monday, further contributing to a short squeeze, which forced investors to buy shares even if they were betting against the stock.
According to the Kobeiss Letter, Beyond Meat momentarily became a $3.5 billion company just six days after the company had reached its lowest valuation of $195 million.
