Beyond Meat, Inc. (NASDAQ: BYND) saw its stock plummet 5.52% in a 24-hour period, continuing its downward trajectory as investors grapple with disappointing preliminary third-quarter results and the fizzling out of a recent meme stock rally. The plant-based meat alternative company has been facing significant challenges, with its shares closing at $1.81 on Monday, marking its fourth consecutive day of losses.

The company's preliminary Q3 report painted a grim picture of its financial health, projecting third-quarter revenue of approximately $70 million, representing a 13% year-over-year decline. Beyond Meat also expects gross margins between 10% and 11%, impacted by a $1.7 million expense related to suspending most of its operations in China. These figures have left investors concerned about the company's ability to achieve profitability in the near term, especially as it hasn't been profitable since May 2020.

Adding to the downward pressure, the recent meme stock frenzy surrounding Beyond Meat has shown signs of losing steam. The sharp reversal in the stock price can be attributed to a broader pullback in meme stocks, leading retail investors to reassess their positions in highly volatile assets. Wall Street remains cautious, with none of the eight analysts surveyed by FactSet maintaining a bullish stance on the stock. As Beyond Meat continues to face significant business challenges, including stiff competition from rivals and ongoing cash burn, investors appear to be reevaluating the company's long-term prospects.