The “meme stock” spirits of years past have been reawakened on Wall Street this Tuesday, as Avis Budget (NASDAQ: CAR) and Beyond Meat (NASDAQ: BYND) – both opened about 20% higher.
The catalyst? A potent cocktail of “very high short interest” and a coordinated “retail buying spree” reminiscent of the 2021 mania.
For Avis stock, the rally is a continuation of its April short squeeze, fuelled by surprisingly resilient used car prices. Meanwhile, BYND shares are riding high on a fresh distribution deal and a pivot into functional beverages.
Versus its year-to-date low, Beyond Meat stock was seen trading up some 130% this morning, while CAR shares are going for nearly 7x their price in late February.
Should you chase the momentum in Beyond Meat stock?
While BYND’s recent gain looks appetizing on a chart, investors should remain wary of biting into its current levels.
Beyond Meat shares may be dressed in the garb of a momentum play currently, but the fundamental reality of this Nasdaq-listed firm is still unchanged; it’s a “falling knife”.
Despite the excitement surrounding its new Beyond Immerse beverage line and breakfast sausages, Beyond Meat’s core business remains in a state of structural decay.
Importantly, BYND stock is grappling with a Nasdaq delisting in 2026, having spent much of the year trading near the $1.0 mark.
The firm’s revenue has been in a steady decline, falling nearly 20% in recent quarters, as consumer fatigue for ultra-processed plant-based meats sets in.
In short, BYND’s recent strength is clearly due to meme stock enthusiasm only, not a business turnaround.
With negative free cash flow and a balance sheet that is rapidly depleting, chasing this momentum is a high-stakes gamble on a company that is essentially running out of time and capital.
Should you chase the momentum in Avis Budget stock?
For those seeking a momentum play with actual horsepower, CAR stock is proving to be a superior vehicle.
Unlike many speculative names, Avis Budget Group is finding success in turning its “high-short-interest” status into a recurring weapon for shareholders.
The company has already soared a whopping 600% – driven by a masterclass in fleet management and a strategic “reset” that followed its 2025 EV impairment charges.
The bull thesis rests on two pillars: supply-side dominance and valuation gap. By aggressively thinning its fleet and leaning into high used-car resale values, CAR is generating massive per-unit margins.
Plus, even at these elevated prices, Avis Budget shares often trade at a “discount” to its historical cash-flow potential when short sellers are forced to cover.
With a short interest still hovering around 26%, the “gamma squeeze” potential remains massive. For those with a high risk tolerance, CAR isn’t just a meme – it’s a high-efficiency machine that punishes doubters.
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