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- Beyond Meat stock rose on Tuesday, extending a meme-like rally from Monday's session.
- The stock was added to the Roundhill Meme Stock ETF, a fund that tracks retail favorites.
- The targeted meme-stock tracking fund also holds a sizable position in Opendoor.
Beyond Meat stock surged on Tuesday, extending its multi-day rally on the back of continued bullishness from retail investors.
A trader named Dimitri Semenikhin shared a bullish thesis on the stock, generating a burst of excitement among the retail cohort. Now, institutional support from an ETF manager has added another catalyst for the shares. Beyond Meat eclipsed Monday's 128% gain on Tuesday, rising as much as 161% to $3.84. It decisively exited penny stock territory after touching an all-time low of $0.50 last week.
On Monday evening, it was announced that the stock was added to the Roundhill Meme Stock ETF, a fund actively managed by Roundhill Investments.
The ETF offers exposure to stocks that rise on retail speculation and social media buzz. It currently has $36 million in assets under management.
Its top holdings include Navitas Semiconductor, a chipmaker that retail investors have embraced due to its proximity to Nvidia, and Opendoor Technologies, the real estate iBuying platform that was this summer's breakout meme stock.
Many of its holdings have performed well over the past year. The ETF does not include the original roster of meme stocks such as GameStop and AMC Entertainment.
Roundhill's webpage shows that it has purchased 970,000 shares of Beyond Meat, a position with a market value of $1,425,900 at the time of purchase. It accounts for roughly 4.03% of the ETF's weight.
The ETF fell on Tuesday. Both Navitas, its top holding, and Opendoor spent the day trending downward on negative market momentum.
