Stocks from Beyond Meat to CoreWeave could see large swings when they report earnings this week

Options markets are signaling significant post-earnings volatility for several companies this week, with Beyond Meat and AI infrastructure provider CoreWeave highlighted for potentially large price swings. Beyond Meat, which is expected to report a Q3 loss of $0.40 per share on $69 million in revenue and has seen its stock decline 65% year-to-date, could experience a 30% move. CoreWeave, despite soaring post-IPO due to major deals, recently tumbled 24% amid concerns over AI spending sustainability and high valuations, and is projected for a 14% move following expected Q3 results of a $0.40 per share loss on $1.29 billion in sales.

Analysis

Options markets signal significant post-earnings volatility for Beyond Meat (BYND) and CoreWeave (CRWV) this week, with implied moves of 30% and 14% respectively. This heightened expectation for price swings is driven by a combination of fundamental challenges and market-specific factors, despite a generally strong broader earnings season.

Beyond Meat is projected to report a Q3 loss of $0.40 per share on $69 million in revenue, continuing a trend of losses over the past five years. The stock has declined 65% year-to-date, and its recent earnings delay due to a noncash impairment charge raises concerns about asset valuation, overshadowing a brief meme-fueled rally last month.

CoreWeave, an AI infrastructure provider, is expected to report a Q3 loss of $0.40 per share on $1.29 billion in sales. While the company saw a 105% surge post-IPO driven by multi-billion-dollar deals with Nvidia and Meta Platforms, it has recently tumbled 24% amid concerns over the sustainability of BigTech AI spending and its high valuation multiples. The current 13.5x LTM sales multiple is projected to decrease to 4.3x by 2026 based on analyst forward estimates, suggesting future growth is significantly priced in.

Key Decisions for Investors

• Investors should exercise extreme caution with Beyond Meat (BYND) given its consistent losses, recent impairment charge, and high options-implied volatility, suggesting a speculative short-term trading opportunity rather than a fundamental investment.
• For CoreWeave (CRWV), monitor Q3 results closely for insights into AI spending trends and management's outlook, as its significant post-IPO gains and subsequent pullback reflect both growth potential and valuation concerns.
• Consider hedging strategies or reduced position sizing for both stocks due to the elevated implied volatility and mixed fundamental signals, particularly for BYND where the risk/reward profile appears skewed to the downside.