During 2020 and 2021 many vegan-alternative stocks like beyond meat and oatly increased rapidly. Now with inflation, recession and interest rates growing they have gone down alot.
But how well will they survive this economic situation?
Take oatly for example.
Their p/e is around -7
They have around 1.7$ per share in capital(share price: 3.4$)
Their revenue is growing but they are still very unprofitable meaning
Increased revenue = increased losses
People are strugeling financially and they just dont care about these alternatives to the real stuff. The real stuff like milk and meat is cheaper so people choose that stuff instead.
It will take years untill wages catch up with inflation so Oatly for example must continue with low, unprofitable prices or they must increase prices wich will kill their revenue. This will make them have multiple bad quarters with bad results and bad forecasts.
So shorting them should be easy money.
Tldr
Vegan-alternative stocks like oatly and beyond meat are trash. They are unprofitable and they will continue to be for many years. They wont be able to raise capital without crashing their shareprice.
So short them.
Not financial advise. Just pure speculation.
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