News Beyond Meat surge like bitcoin bubble

Beyond Meat surge like bitcoin bubble

-

- Advertisment -

Bitcoin bull Michael Novogratz is seeing the same rush of enthusiasm toward Beyond Meat that came at the height of the crypto bubble.

The former Fortress hedge fund manager said while big ideas — like new alternatives to animal meat and money — capture people’s attention, they can also become drastically overbought.

“Beyond Meat reminds me a little bit of crypto in 2017,” Novogratz told CNBC’s “Squawk Box ” on Thursday. “You get great bubbles on big ideas. This is a great bubble.”

The plant-based meat maker has been on a tear since its IPO in May. Last week, shares hit an all-time high of $208.48, a 720% rally since the IPO. But the hot streak snapped this week after the company posted mixed second-quarter earnings.

Shares continued to stumble Thursday, dropping 10%, after the company announced a secondary stock offering at $160 — an 18.6% discount from Wednesday’s closing price. Beyond Meat plans to sell an additional 3.25 million shares with 3 million coming from investors and 250,000 from the company.

Beyond Meat surge like bitcoin bubble

As more shares come on the market and the lock up period for employees ends, Novogratz predicts a steep decline in Beyond Meat’s share price.

Much like bitcoin, Beyond Meat is trading at a “ludicrous price, but everyone gets sucked in,” said Novogratz, who is also a former Goldman Sachs macro trader.

“All the young guys on their Robinhood accounts are buying this. This is their crypto,” he said.

Novogratz was an early bitcoin investor and started a cryptocurrency-focused merchant bank Galaxy Digital, which went public on a Canadian stock exchange last year during what many called “crypto winter.” Cryptocurrency became a poster child for retail-driven bubbles after bitcoin rallied to almost $20,000 at the end of 2017, only to come crashing down the following year.

Bitcoin lost more than 70% of its value last year, and ended 2018 around $3,800. It was trading near $10,012 Thursday.

Beyond Meat surge like bitcoin bubble

CNBC’s Jasmine Wu contributed reporting.

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

4 Tips on How To Succeed on Bitcoin Trading

Bitcoin is a type of cryptocurrency which has grabbed the attention of countless people from different countries....

The First Cryptocurrency Bank License Is Now Granted

This is a historic development. A milestone in Bitcoin's path to broad acceptance and recognition. The State...

Yield Farming Program “Volcano” Kicks off Dutch Auction for Cryptokitties KittieFIGHT Game

In the fall of 2017, along with the rallying of Bitcoin and other digital assets, Cryptokitties dominated...

Ministry of Foreign Affairs of Denmark may use Blockchain to tackle corruption

We have already moved to the stage in our lives where technology plays an important role in...
- Advertisement -

What Lessons Can The World Learn From Venezuela’s Newfound Love For Crypto?

It is often the case that great changes are forced out of necessity, rather than a willingness...

How Bitcoin Capitalization Affected In 2020 on the Quarantine Background

Although the weeks of quarantining are gradually easing off, the impact of dealing with the deadly coronavirus...

Must read

4 Tips on How To Succeed on Bitcoin Trading

Bitcoin is a type of cryptocurrency which...

The First Cryptocurrency Bank License Is Now Granted

This is a historic development. A milestone...
- Advertisement -

Read Next
Recommended to you