Biondmit shares soared 20% following collaboration with PepsiCo – Global Markets

Stock BONDMIT (NYSE: BYND) Jumps today on Wall Street by almost 20%. The company announced to pre-trade markets that it had signed a partnership with the beverage giant PepsiCo (

PEPSICO INC
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) For the production of snacks with substitutes for animal products.

Biondmit and PepsiCo are forming a joint venture called The PLANeT Partnership. The purpose of the new venture is to create and sell herbal snacks and beverages, which will combine the relative benefits of each company. While the potential for Bionmite is great, PepsiCo investors are reacting relatively complacently when the stock rises less than 1%.

Biondmit is traded at a value of $ 12 billion compared to PepsiCo with a market value of $ 195 billion. It should be noted that the two companies did not provide financial details regarding the new company to be established.

Aside from Biondmit’s dramatic announcement of the collaboration, there is a chance there is another reason for the rises. Investment forums point out that the surge in Beyond Meat shares is also due to a squeeze short. Beyond Meat is one of the companies that enjoys one of the largest short-term investment rates on Wall Street (24% of stock trading). Investors who realized that their short would not materialize were covered and bought the stock in the market at higher prices.