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Given that these stocks are priced on their potential to grow and not on the assets they already have, that seems correct.

teekert 4y ago
Yeah, this annoys me quite a bit, but I guess I was naive. I’ve recently started buying stocks from companies I think are really on a nice path for the future, I’m in the field of genomics so I think I have a nice view on novel developments, like Liquid Biopsies (blood based cancer monitoring and diagnostics)… And indeed some companies report growth of up to 30%… and then the stock goes down because it is less than expected. I know it was going to be like that but it’s even more so than I expected it to be. It feels… annoying. Same with Beyond meat, they strike some deal with McDonalds, feels like a big deal, the stock does… nothing :s.
- fauigerzigerk 4y ago
  I think that's because many market participants make bets on other people's expectations rather than anything fundamental. That's why the market is always wrong ;-)
- lkrubner 4y ago
  As John Maynard Keynes said, it doesn't matter what you as an investor think of a stock, or what you think other investors will do, or what other investors think you will do, or what other investors think other investors will do, what matters is what other investors think other investors think other investors think other investors will do. "And there are some, I believe, who practice the fourth, fifth and higher degrees." https://en.wikipedia.org/wiki/Keynesian_beauty_contest https://en.wikipedia.org/wiki/Keynesian_beauty_contest
- solumunus 4y ago
  Because Beyond Meat is overvalued right now. - It's trading way beyond its revenue and losing lots of money. - The McD partnership alone isn't going to put them in profit, nowhere close, not to mention McD are going to be suffering themselves (relatively speaking) over the next few years. - People with plant based diets don't tend to be huge McD consumers. - BM's growth has been poor over the last few years. A lot of meat eaters tried these plant based burgers as a gimmick during the initial hype, few continued to buy it regularly. Sure, there is a general growing market for plant based options but it's a slow burner. - Even within that growing plant based market, Beyond Meat is expensive. It's a luxury choice. It's exactly the type of business I can see suffering over the next few years as disposable income shrinks. They might be on a nice path for the future if you're thinking very long term, but in general these equity markets are placing the most weight on what's happening in the next 6-24 months, and in the next 6-24 months I can't see a bullish argument for Beyond Meat.

teekert 4y ago

Yeah, this annoys me quite a bit, but I guess I was naive. I’ve recently started buying stocks from companies I think are really on a nice path for the future, I’m in the field of genomics so I think I have a nice view on novel developments, like Liquid Biopsies (blood based cancer monitoring and diagnostics)… And indeed some companies report growth of up to 30%… and then the stock goes down because it is less than expected. I know it was going to be like that but it’s even more so than I expected it to be. It feels… annoying. Same with Beyond meat, they strike some deal with McDonalds, feels like a big deal, the stock does… nothing :s.

fauigerzigerk 4y ago
I think that's because many market participants make bets on other people's expectations rather than anything fundamental. That's why the market is always wrong ;-)
lkrubner 4y ago
As John Maynard Keynes said, it doesn't matter what you as an investor think of a stock, or what you think other investors will do, or what other investors think you will do, or what other investors think other investors will do, what matters is what other investors think other investors think other investors think other investors will do. "And there are some, I believe, who practice the fourth, fifth and higher degrees." https://en.wikipedia.org/wiki/Keynesian_beauty_contest https://en.wikipedia.org/wiki/Keynesian_beauty_contest
solumunus 4y ago
Because Beyond Meat is overvalued right now. - It's trading way beyond its revenue and losing lots of money. - The McD partnership alone isn't going to put them in profit, nowhere close, not to mention McD are going to be suffering themselves (relatively speaking) over the next few years. - People with plant based diets don't tend to be huge McD consumers. - BM's growth has been poor over the last few years. A lot of meat eaters tried these plant based burgers as a gimmick during the initial hype, few continued to buy it regularly. Sure, there is a general growing market for plant based options but it's a slow burner. - Even within that growing plant based market, Beyond Meat is expensive. It's a luxury choice. It's exactly the type of business I can see suffering over the next few years as disposable income shrinks. They might be on a nice path for the future if you're thinking very long term, but in general these equity markets are placing the most weight on what's happening in the next 6-24 months, and in the next 6-24 months I can't see a bullish argument for Beyond Meat.