Beyond meat stock boosts on PepsiCo Partnership. What could be behind the move.

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Beyond meat

stock went up on Tuesday, after another meat manufacturer said it had partnered with

PepsiCo

– there may be more to move.

Beyond Meat (ticker: BYND) and PepsiCo (PEP) have announced a new joint venture, The PLANeT Partnership, in which food manufacturers will “develop, manufacture and market innovative food products and beverages made from plant-based proteins. ”Both companies hope to use Beyond Meat’s faux meat technology with Pepsi’s marketing and distribution infrastructure. No financial terms have been disclosed.

Beyond Meat stock jumped 25% to $ 198.33 in recent trades; Pepsi was 0.4% higher at $ 140.76.

Beyond Meat stock is famous for big pops on news of partnerships with established food brands. Earlier this year, shares jumped 14% on the Beyond deal with Yum! Brands’ Taco Bell (YUM). At the end of 2020, the stock rose nearly 10% after the company said it was expanding its distribution with it

Walmart

(WMT). Similarly, the shares awoke 20% later

McDonald’s

(MCD) announced their McPlant venture, as the company has not, in accordance with previous practices, confirmed that it is using Beyond Meat products.

However, there could be more going on than just excitement about Pepsi news. With just over 38% of its shares sold short – meaning positions that promise the stock will fall – Beyond Meat stock could be caught in the real growth of speculative trading which has captured popular bearish trading. In other words, investors may be racing to turn their bets back until Beyond stock falls, also known as short-term pressure.

GameStop

(GME) the poster child recently for this. Shares, which jumped 17% again at a recent survey, have risen 332% since the beginning of the year. This brief squeeze has made bears get creative, but it has also poured into other stocks with short-term interest.

Bath Bed & Beyond

Stock (BBBY) is another example. It was hit by two declines today, with analysts unwilling to continue raising their target prices after shares rose more than 70% in just over three weeks.

With a climb of more than 60% to date, today’s jump, and short-term interest high, Beyond Meat seems to be a prime candidate to join this group – even if the his agreement with Pepsi ultimately supports the industry.

Write to Teresa Rivas at [email protected]