Beyond Meat stock surged on Tuesday, extending its multi-day rally. The plant-based meat producer is in full focus as a new favorite among the retail investing community but now Wall Street is taking notice.
After retail investor Dimitri Semenikhin shared a bullish thesis on BYND stock, including the rationale for his purchasing ¼ of the company’s shares, other traders quickly rushed to join the frenzy.
The stock jumped 84% in intraday trading on Tuesday, passing $2.70 per share after starting the week at just above $1. Now it has received a positive endorsement from Wall Street, after being added to the Roundhill Meme Stock ETF, announced on Monday evening, a fund actively managed by Roundhill Investments.
“I wasn’t expecting [it,” Semenikhin said when he heard about the news. “Not surprised, though given the size and momentum this movement has received.”
Beyond Meat being added to this fund likely won’t surprise anyone who follows the meme stock movement. The fund is known for offering exposure to stocks that rise on retail speculation and social media speculation, as opposed to pure fundamentals. It currently has $36.37 assets under management.
Its top holdings include Navitas Semiconductor, a chipmaker that retail investors have embraced due to its proximity to Nvidia and Opendoor Technologies, the company previously considered the year’s breakout meme stock.
“We added Beyond Meat as it fits squarely within the MEME ETF’s framework, a surge in trading volume, rising implied volatility, and renewed retail attention,” Roundhill CEO Dave Mazza told Business Insider. “The stock has emerged as a focal point for retail activity, and our process is designed to capture precisely that kind of momentum.”
Many of the fund’s holdings have performed well over the past year. The ETF does not include original meme stock such as Gamestop and AMC Entertainment that have struggled significantly.
Roundhill’s webpage shows that it has purchased 970,000 shares of Beyond Meat, a position with a market value of $1,425,900 at the time of purchase. It accounts for roughly 4.03% of the ETF’s weight.
Despite taking a sizable position in Beyond Meat, the ETF fell on Tuesday. Both Navitas, its top holding, and Opendoor sent the day trending downward on negative market momentum.