Shares of Beyond Meat surged by over 65% in premarket trading on Monday, driven by a short squeeze fueled by retail traders. The surge follows a pattern reminiscent of past “meme stock” rallies, with traders betting against the stock forced to cover their positions by buying shares, pushing the price higher. About 10.5% of Beyond Meat’s shares were sold short, with a significant increase in trading volume observed.

Retail investors have rallied around Beyond Meat, drawing comparisons to the GameStop rally of 2021. Figures like Dimitri Semenikhin have been advocating for the stock, touting its potential despite struggling fundamentals. While the recent surge has brought excitement, experts warn that the gains are driven by speculative buying rather than improvements in the company’s business performance. Retail investors are encouraged to exercise caution due to the volatile nature of these types of trades.