Diamonds and Dogs
Beyond Meat (BYND) beyond selling off. The faux meat-maker's shares are up 26% today and have quadrupled since coming public last month. The company is still losing money, but sales rose 240% to $40 million. For the year, the company raised sales guidance to $210 million. The market cap is now $7 billion or 35 times sales. Most companies trade for 3 to 5 times sales. Hopefully, the fundamentals will continue to improve or else new shareholders are in for a rude awakening.
Shares of Domo (DOMO) looked doomed. The cloud-based platform company is down 20% today to a four month low following earnings. The company reported a loss, but beat expectations as sales rose 28% to $40 million (same revenue as Beyond Meat). Guidance was a little light of expectations and shareholders were not happy. On the plus side, the valuation of the stock is much more attractive than Beyond Meat.