Shares of faux-meat maker Beyond Meat (BYND) - Get Report sizzled earlier Tuesday on reports the company is debuting a new, plant-based "ground beef" that marbleizes and tenderizes the same way real ground beef does, though flamed out as investors turned their focus back to the stock's lofty valuation. 

Shares of Beyond Meat surged more than 14% in early trading, rising $24.62 to $194.58 on the Nasdaq Stock Market. That came on top of a more than 12% gain on Monday. By midday, however, the stock had reversed course, falling nearly 3%, or $4.50, to $165.46.

The new product is made from a combination of plants including pea protein, mung bean protein and brown rice proteins, and is designed to be used in precisely the same way ground beef is used, according to media reports.

The beyond-ground-meat product will begin arriving on store shelves starting June 24. It will be sold at several grocery chains including Whole Foods, Wegmans, HEB and Atlanta-area Kroger stores.

Shares of Beyond Meat have surged beyond investors' and analysts' expectations since its public debut on May 2 amid expectations that demand for meat-like products that aren't actually meat will continue to surge.

The company's stock jumped more than 14% last Wednesday alone after Canadian coffee chain Tim Hortons said it was now offering faux-meat breakfast sandwiches made with Beyond Meat products at almost 4,000 of its locations. Tim Hortons is a subsidiary of Restaurant Brands International (QSR) - Get Report .

Even so, analysts and investors remain cautious on the company's valuation and longer-term prospects. Several research firms including Sanford Bernstein have recently lowered their ratings and price targets on the stock on "valuation considerations."

Overall, Beyond Meat currently has a consensus hold rating and an average price target of $108, substantially below its current trading price.

Norman Levine, a managing director and portfolio manager with Toronto-based asset management firm Portfolio Management Corp., equated Beyond Meat's $40 stock-price swing Tuesday to gambling.

"So far today $BYND stock has had a $40 per share price swing." Levine posted on Twitter. "This stock is not, at this time, for investing. It is only for minute by minute gambling. One day reality will set in. Until then, buyer beware."

Taste Test: Our Reporters Try the Beyond Meat Burger, Talk Business Model