Beyond Meat shares surge after falling below IPO price

STORY: Shares of Beyond Meat rode a roller coaster on Thursday, falling as much as 22% to a record low, then reversing course to soar as much as 12% higher.

Shares of the heavily shorted Beyond Meat were halted multiple times in the first half hour of the session for volatility, after opening below the company's IPO price for the first time ever.

The choppy trading followed a disappointing earnings report on Wednesday, in which the plant-based meat maker posted a wider-than-expected quarterly loss, as it faces rising costs to battle increased competition.

That led some on Wall Street to worry over the possibility of the company needing more cash.

CEO Ethan Brown sought to address the concerns, saying "I wouldn't take this quarter's cash consumption and then just kind of play it out and assume that we're out of cash based on that," adding that the company was taking "several measures" to reduce expenses.

At least five brokerages cut their price targets on the stock Thursday, with some raising concerns over the company's path to profitability, especially as they anticipate cost pressures to remain due to surging inflation.

Beyond Meat's market value has plummeted to less than $2 billion from a peak of about $14 billion.

Market watchers saw the stock's stunning rebound on Thursday as some traders buying the dip, with one equity manager telling Reuters: "The stock is down 87% from its high and I think people are saying, at this level, maybe I give it a shot."

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