Shares of Beyond Meat, Inc. (BYND) are soaring 5.32% in pre-market trading on Wednesday, building on the momentum from Tuesday's 9.12% gain. The surge comes after the plant-based meat alternative company released a better-than-anticipated revenue forecast for its third quarter, despite facing ongoing challenges in the market.

Beyond Meat projected third-quarter revenue of approximately $70 million, slightly exceeding analyst expectations and aligning with prior guidance. While this forecast represents a 13% year-over-year decline, it has seemingly boosted investor confidence in the struggling "meme stock." The company also anticipates gross margins between 10% and 11% for the quarter, which includes a $1.7 million expense related to scaling back operations in China.

However, analysts remain cautious about Beyond Meat's long-term prospects. BTIG analyst Peter Saleh maintains a neutral stance, citing persistently low gross margins and elevated operating expenses as ongoing challenges to profitability. Saleh noted, "We see no signs of sales recovery, minimal progress toward sustainable financial health, and potentially worse cash burn than last year." Despite these concerns, the pre-market stock movement suggests that investors are finding some optimism in the company's latest financial projections, potentially seeing it as a sign of stabilization in a challenging market environment.