Beyond Meat stock price explodes after striking a JV partnership with PepsiCo

Shares of Beyond Meat (NASDAQ: BYND) are trading about 18% higher today after the company announced a partnership with PepsiCo to create plant-based products. 

Fundamental analysis: Major deal for BYND agreed

Two companies announced a partnership to create a joint venture “The PLANeT Partnership”. The company will create and sell plant-based snacks and drinks. 

The statement adds that the new joint venture will use PepsiCo’s production and marketing expertise, while BYNDF will contribute with its technical knowledge on making plant-based products. 

A new JV will also help PepsiCo meet its sustainability and emission-reduction targets. The food and drinks giant is also committed to reducing the amount of sugar used in its products.

Technical analysis: Shares explode

BYND stock price initially exploded nearly 40% in pre-market trading Tuesday. Shares opened at $218.90 before edging a bit higher to print $221.00, the highest BYND traded since July 2019.

However, around half of these gains were given back as the price action now trades around 18% in the green. For buyers of BYND stock, a daily close above $197.50 is crucial going forward. 

Summary

Beyond Meat share price is trading much higher today after the firm announced it is forming a joint venture with PepsiCo to create plant-based products.