Beyond Meat, Inc. (NASDAQ: BYND) saw its stock plummet 10.30% in pre-market trading on Monday, as the recent meme stock frenzy surrounding the plant-based meat alternative company showed signs of losing momentum. This sharp decline follows a tumultuous period of extreme volatility, including a 19.91% drop in Sunday night trading.

The rapid reversal in Beyond Meat's stock price can be attributed to several factors. First, the broader pullback in meme stocks has led retail investors to reassess their positions in highly volatile assets. Additionally, growing skepticism from investors and analysts about the sustainability of the stock's recent rally has contributed to the selloff. Wall Street remains cautious, with none of the eight analysts surveyed by FactSet maintaining a bullish stance on the stock.

Beyond the hype, Beyond Meat continues to face significant business challenges. The company has been grappling with declining sales, stiff competition from rivals like Impossible Foods, and ongoing cash burn. Beyond Meat last reported a quarterly profit in May 2020 and has yet to achieve annual profitability. These fundamental issues are weighing heavily on investor sentiment, despite recent developments such as a debt-for-equity swap and a partnership with Walmart Inc.