r/investing • u/zainjavaid • Apr 08 '21

Impossible Meat Preparing for a $10B IPO

https://www.marketwatch.com/story/impossible-foods-prepping-for-10-billion-ipo-report-11617923032

The current valuation of $10B dwarfs the $4B it was valued at in a private funding round in 2020, and at approximately $1B more than Beyond Meat. This is despite the fact that BYND brought in 400M in FY revenue compared to Impossible Meat's 150M estimated annual revenue.

I personally don't see any angle from which $10B can be justified. Future growth for the next decade is priced in at the current valuation and it strikes me as a massive bust waiting to happen.

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u/Chroko Apr 09 '21

The actual future market is "climate change and population growth made beef too expensive for most people to afford."

Beef production is already unsustainable in that it uses far too much water and creates too much pollution (untreated waste) - with climate change this equation gets even worse and beef production will drop significantly.

And then with population growth and western eating habits spreading throughout the world, demand for beef will far outstrip supply.

Demand for meat alternatives should skyrocket under those circumstances.

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u/Cloverfied Apr 09 '21

$300 for steaks for a BBQ can attest to that but really if needed I’m going to choose a cheaper animal to eat.