To The Moon

Beyond Meat, Nvidia, Tesla See Rising Short Volume

$Beyond Meat, Inc.(BYND)$   shares jumped more than 50% Monday, extending the previous session's surge and adding pressure on short sellers who wagered on the stock's continued slump. 

The stock soared after the company said it swapped $1.15 billion of its debt into convertible notes, significantly reducing the risk of bankruptcy for the troubled plant-based protein producer. In exchange for the tendered notes, Beyond Meat will issue $196.2 million in new 7% convertible notes due 2030.

Trading on borrowed Beyond Meat shares that were sold short climbed to 34.3 million shares on Friday, as the stock climbed as much as 45%, before ending the day up 24%. Before that day's surge, the stock has lost about 92% of its value over the past year amid weakening demand. The company's revenue shrank in 11 of the past 13 quarters as it struggled to revive consumers' appetite for plant-based protein. 

After the debt swap closes, existing noteholders would own about 326 million shares, or about 81% of the outstanding common stock, and will get about $215 million in principle amount of the new notes, according to the company's filing with the Securities and Exchange Commission last Friday.

Meanwhile, $NVIDIA(NVDA)$  's short volume declined to 13.66 million borrowed shares last Friday, as the stock advanced for a second straight day. While the share price declined 0.2% in the first 30 minutes of trading Monday, Nvidia has managed to hold on to this year's gain of more than 35%, even amid worries of a bubble brewing in the AI space that's currently dominated by the chip giant. 

CEO Jensen Huang is reportedly scheduled to meet with world leaders and key executives during the Asia Pacific Economic Cooperation (APEC) CEO summit in South Korea, giving the company more opportunities to showcase its powerful chips and other advanced technologies and further expand its backlog.  

$Tesla Motors(TSLA)$  's short volume rose to 7.62 million shares on Friday, from 6.54 million shares a day earlier. The latest data represented about 8.53% of that day's total trading volume, according to exchange data. 

Speculators who bet against Tesla have had to contend with a stock doubled over the past year. Eighteen analysts have raised their price target on the stock over the past month, compared with three who lowered theirs, helping fuel the upward momentum.

Still, analysts' average price target on the stock is just $355.11, about 20% below its current stock price. 

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