Beyond Meat, a plant-based meat company, saw a meme stock rally last month but lost most gains. Investors doubt its ability to escape a dilution spiral, forecasting further share drops. Despite staying afloat, shares are likely to continue declining in value, posing a risk for investors.

The once-promising growth stock, Beyond Meat, faced declining sales due to competition and waning popularity of plant-based diets. Unprofitable and in a dilution spiral, the company resorted to selling more stock to cover losses, leading shares to plummet over 99% from their peak.

Short-sellers targeted Beyond Meat as short interest rose following a debt restructuring plan. Meme stock speculators then triggered a rally, pushing shares from $0.55 to $7.69. However, lackluster results caused a rapid sell-off, highlighting the company’s underlying struggles and uncertainty.

Despite staving off bankruptcy with a debt deal, Beyond Meat needs a strong turnaround plan focusing on profitability to avoid further dilution. Shareholders should consider selling, and potential investors should approach cautiously, given the company’s current challenges and uncertainties.

Read more at Yahoo Finance: Is There a Future for Beyond Meat?