Meme stock halo fades away. Beyond Meat (BYND.US) returns to its original form after a dismal financial report.

Concept stock of artificial meat Beyond Meat (BYND.US) once again became the focus of meme stocks after announcing preliminary performance for the third quarter last week. Following a sharp drop of 23.06% last Friday, Beyond Meat fell more than 5% before the market on Monday. According to the data released, the company expects third-quarter revenue to be around $70 million, slightly higher than analysts' expectations and in line with previous guidance. However, this expected revenue is down 13% compared to the same period last year, highlighting the continued soft demand for its plant-based products. Beyond Meat also expects gross profit margin to be between 10% and 11% this quarter, which includes $1.7 million in expenses due to the suspension of most of its business in China. Operating expenses are expected to be in the range of $41-43 million, with about $2 million being non-recurring expenses, covering legal fees, retention plan costs, and lease termination fees. BTIG analyst Peter Saleh stated that the continued low gross profit margin and high operating expenses are once again killing the possibility of profit. He said in a recent report, "We maintain a wait-and-see stance because we have not seen signs of sales trends recovering, the company has made no progress in achieving sustainable financial conditions, cash consumption may be worse than last year, and the recent completion of convertible bond financing has resulted in severe dilution of equity, indicating a tough financing environment for the company." Saleh and his team hold a neutral view on Beyond Meat stocks: on one hand, the company has a high brand awareness and consumer acceptance of plant-based proteins is on the rise; on the other hand, sales decline, weak demand in the US market, deteriorating financial conditions, and potential funding needs offset these advantages. Saleh warned, "Although the company has recently expanded its restaurant partnerships, products that become permanent on the menu are few. Considering restaurants' hesitation towards large-scale or continuous supply of plant-based meat, we believe the time needed for sales growth to rebound may exceed expectations." Given the weak outlook for sales growth, increasing competition, existing cash consumption issues, and uncertainty about additional financing, BTIG has given the stock a "neutral" rating.