Beyond Meat, Inc. (NASDAQ: BYND) saw its stock soar 5.03% in pre-market trading on Thursday, continuing a wild week of trading fueled by meme stock enthusiasm and positive business developments. The plant-based meat alternative company has been at the center of a retail investor frenzy, drawing comparisons to the GameStop saga of 2021.

The recent rally has been driven by several factors. On Tuesday, Beyond Meat announced an expanded partnership with Walmart, which will now distribute its products, including a new six-piece "value pack," in over 2,000 stores. This news came on the heels of a debt restructuring deal that initially sent the stock tumbling below $1 last week but has since been viewed more positively by some investors.

The stock's momentum has been further amplified by its popularity among retail traders and its high short interest. As of the latest data, about 10.4% of Beyond Meat's shares were held short, creating conditions ripe for a potential short squeeze. The combination of positive news, high short interest, and retail investor interest has led to explosive trading volumes, with over 2 billion shares changing hands on both Tuesday and Wednesday.

However, market observers caution that the rally may be disconnected from Beyond Meat's fundamental challenges. The company has faced declining sales over the past three years and continues to grapple with profitability issues. As the stock experiences extreme volatility, investors are reminded of the risks associated with meme stocks and the potential for rapid price reversals.