Jim Cramer: What Beyond Meat Investors Can Learn From Shake Shack

Author:
Publish date:
Video Duration:
0

To infinity and BYND?

Beyond Meat (BYND) - Get Report reported earnings last night.

It announced a loss per share of 24 cents, coming in short of analyst expectations of 8 cents per share.

The company released revenue of $67.3 million, beating expectations of $52.7 million.

Shares of the company promptly fell, however, after it announced that it was doing a second offering of 3.25 million shares. Three million of that will come from "certain selling stockholders," while the other 250,000 will come from the company.

So, based on all of that, what should investors do now?

"If you own [Beyond Meat], you sell some," said Cramer. 

Why? Well, Cramer likened Beyond Meat to Shake Shack (SHAK) - Get Report

"And then, you know, there's just not enough stock around and it's kind of a prisoner's dilemma. Do you sell it and lock in a gain or do you keep it and therefore don't let the shorts cover and that's the game that's being played right now," said Cramer. 

More from Cramer Today

Full Replay: The Apple of Your Eye? Jim Cramer on Apple, the Fed and Beyond Meat

Jim Cramer's Best Advice Ahead of the Fed? Do Nothing

Jim Cramer: The One Number to Watch in Apple's Earnings Report

Smart Investments Go Beyond CEOs - Jim Cramer on Ethan Brown

Shark Tank Star Kevin O'Leary: U.S. Economy Too Strong to Crumble Now