How to buy Beyond Meat stock? Beyond Meat, a producer of plant-based meat substitutes made its market debut in May 2019. This article will share more information on how to invest in this company.
If you’re interested in buying the stock, it can be done entirely online. While you may already be thinking of investing in these shares, this article does not advise you to invest in Beyond Meat.
We will share how you can buy stock in companies, with Beyond Meat as an example. Investing in the company is an investment decision for which you might want to consult your investment advisor. This is not investment advice by any means.
Overview of Beyond Meat
Beyond Meat is a Los Angeles-based producer of plant-based meat substitutes, which launched its initial products in the United States in 2012.
The company has products designed to emulate beef, meatballs, ground meat, and pork sausage links and patties.
Beyond Meat is listed on the NASDAQ under the ticker symbol BYND and has a market capitalization of $7.92 billion. It has forged numerous partnerships with brand name companies like Pepsi, Taco Bell, KFC, Dunkin’, and McDonald’s.
If you’re thinking of investing in the company, you should look at the stock’s recent performance and its potential for future growth.
You should also look at future product announcements, and other impacts on the markets the company operates in to analyze if any announcement could impact the stock adversely.
Beyond Meat’s stock performance in recent years
Beyond Meat has been performing well since its debut in May 2019. Its IPO was priced at $25 and it has delivered a 600% return from its offering price.
The company has been a stock market star since its debut, posting triple-digit revenue gains every quarter.
The temporary closure of restaurants and cafeterias caused by the pandemic, resulted in the slow down of Beyond Meat’s revenue growth.
The pandemic caused the stock price to dip, but the stock has recovered quickly in a few months. In May 2019, the stock was trading at $66.79, and the current price as of April 2021 is $126.12.
Buying, selling, and trading Beyond Meat shares
Here are the differences between buying, selling, and trading Beyond Meat shares.
Buying Beyond Meat shares
Buying Beyond Meat shares involves finding a broker and placing an order to buy the stock. You would want to buy at a lower price to profit if the stock price goes up.
Selling Beyond Meat shares
If you already hold the stock, you can sell it for a profit if you’d like to. If the share price has increased significantly since you purchased it and if the market conditions look favorable for selling.
That is, if you expect the share price to drop, you can sell the shares and make a profit. Selling involves finding a broker and placing an order to sell Beyond Meat shares.
Trading Beyond Meat shares
Trading Beyond Meat shares is the same as buying and selling the shares, but it is done over shorter periods. With trading, the goal is to make smaller profits quickly.
You also run the risk of making losses rapidly as well. If you’re a new investor, we recommend buying and holding your investment in the company for a more extended period, i.e., six months to a year or more.
Steps to follow before investing in Beyond Meat stock
1. Understand how the stock market works
If you want to invest in Beyond Meat stock, you should understand how the stock market works. You should not panic when stocks go down or buy in a frenzy when stocks trade high.
2. Research the stock
As an investor, it is a good idea to buy stocks in companies that you’re already familiar with and know well. If you are already using the company’s products and trust the Beyond Meat brand, you can buy the company’s shares. Before you invest, you should take steps to research the stock and its fundamentals.
You should look at where Beyond Meat gets its revenue from, how its growth looks like, and what its plans are. Most of this information will be available in the company’s annual report in the annual letter to shareholders. This letter will share the essential updates in the business.
The Beyond Meat SEC filings, conference call transcripts, quarterly earnings updates, and recent news about the company are good sources of information to analyze the company.
The more analysis you do and the more information you have, you will make more intelligent decisions about investing in the company.
3. Examine broader market conditions
You should also look at broader market conditions before you buy the stock. If it is a bull market, the Beyond Meat share price will go up, and it would make sense to buy the stock immediately.
If it is a bear market, the share price will go down, and it might be better to wait to buy at a lower price.
How to buy Beyond Meat stock – a step by step guide
Buying Beyond Meat shares is a simple process, even for new investors. If you’re thinking of buying the stock, you must decide whether you want to buy the stock for the short term or the long term.
If you’re going to invest in the company in the short term, you should perform a technical analysis of the stock.
If you want to hold the stock for the longer term, you should perform a fundamental analysis of Beyond Meat. You should also keep yourself updated with news and with developments of Beyond Meat. Here are the steps you need to follow.
1. Select a broker
To invest in Beyond Meat shares online, you will need to use an online brokerage platform. Our broker reviews can help you select from the best brokers for stock trading. In general, you should look at the following parameters before selecting a stockbroker.
- Stocks available for trading: The first criteria for selecting the broker is that you should be able to use the broker to trade the stocks you’re interested in.
- Commissions charged: Some brokers charge a higher commission, so if you want to maximize your profits, you would want to choose a broker with lower commissions.
- Account fees: You should also watch out for other fees such as annual fees, inactivity fees, trading platform subscription fees, and fees for research or data. Brokers will also charge a fee for transferring cash or investments or for closing your account. You can avoid many of the fees by choosing a broker that doesn’t charge fees or by opting out of services that cost extra.
- Payment methods: Some brokers are more flexible in their payment methods than others. If you want flexibility in payments, this should be one of your criteria.
- Track record: You should choose a broker based on their track record. The broker that you choose should have a track record of reliability, and they should have been around for a while and have good reviews online.
Our broker reviews can help you select from the best brokers for stock trading. Here are the best stock brokers of 2021.
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2. Open a brokerage account
This is the account in which your shares will be stored. Opening a brokerage account has become very simple. The steps vary from platform to platform, but you should be good to create your account once you provide your details and some form of identification. Again, the time taken to open an account varies between platforms.
3. Fund your brokerage account
The next step is to log in to your account and deposit money in your brokerage account. Most brokers accept bank and debit card transfers, and some accept transfers through other methods such as Paypal.
4. Decide how many shares you want to buy
If you’re a new investor, you could start small with a small amount and gradually increase your investment as you get more experienced in the stock market.
You can also think about investing in fractional shares, which certain brokers offer. Buying a fractional share means you are purchasing a portion of the stock instead of the whole stock. If the share is too pricey, you can opt to buy a fractional share in the company.
5. Choose your stock order type
All you have to do now is search for the BYND ticker, specify the number of shares, choose your order type and click on buy. Once you place your order, your broker will execute the order, and the shares will be listed in your account.
There are different order types you can place. Let’s look at the most commonly used ones, the market order and the limit order.
The market order instructs your broker to place an order at the prevailing market price. There are no price parameter restrictions on this order.
You should use this order type for stocks that don’t experience wide price swings, generally larger company stocks. Stock prices can vary between seconds.
If a small price fluctuation does not matter to you, you should place a market order. If you place a market order trade “after hours,” when the markets have closed for the day, your trade will get executed the next day at the prevailing market price.
The limit order instructs your broker to place an order when the stock reaches a certain price point. It gives you control over the price at which your trade is executed.
For example, if a stock is trading at $200, but you value the company at $180, the limit order tells your broker to wait till the stock reaches $180. Limit orders are suitable for smaller company stocks that experience wide price swings.
6. Review your position periodically
Once you have purchased the stock, you should monitor the stock according to your investment strategy. You should follow the quarterly and the annual results of the company and the news and developments in the company.
Investing always comes with certain risks. You can reduce risks by diversifying your portfolio and by avoiding scams by choosing a reliable broker. To recap, you can buy Beyond Meat shares by selecting a broker, opening a brokerage account, depositing money in your brokerage account, placing an order, and reviewing your position periodically.