Beyond Meat is the maker of plant-based pork and beef substitutes. The California based company chose to go public this year. The Washington Post wrote that the company had the best market debuts in a year that filled with new IPO offerings. Beyond Meat priced shares at $25 yet opened on the NASDAQ stock market at $46 dollars a share. I would say that the company valued the IPO correctly in that in opened higher than its initial offering value and closed with a 163% premium, around $64 per share (Shaban & Heath, 2019).

While Beyond Meat made history with the biggest IPO debut since the financial crisis of 2008, it has yet to turn a profit. After doubling its 2017 earnings to nearly $88 million in revenue in 2018, the company has lost roughly $30 million over the last two years. Regardless, additional value for shareholders is a given with results like theirs (Shaban & Heath, 2019). Beyond meat closed its first day at a market value of $3.83 billion (Lipschultz & Singer, 2019). The company plans to use the money earned in the IPO to invest in expanding R&D, manufacturing and marketing (Shaban & Heath, 2019).

Competing in the processed food market with large companies like Tyson is no easy task. Particularly since Beyond Meat is offering a product that is unique and maybe a little less main stream. This influenced the IPO because it offers something completely new to the market, playing on our increasingly health-conscious population. In my opinion, Beyond Market exceeded expectations with their IPO and likely shocked people with their results, which will in turn increase their exposure. Although successful in their IPO, Beyond Meat will need to begin turning a profit in order to maintain interest beyond the initial IPO excitement.

explain whether you agree or disagree with the above assessments of my Selected IPO. Can you identify additional economic and market factors that may have influenced the results of the IPO?