Beyond Meat soars on plant-based deal with PepsiCo

Shares of Beyond Meat jumped on Tuesday morning after the company announcing it was forming a joint venture to produce and market plant-based foods with PepsiCo.

Video Transcript

BRIAN SOZZI: All right. Before we head to break, really worth highlighting, Beyond Meat shares up 35% premarket. The company came out premarket and said they are now doing a joint venture with PepsiCo. Not many details provided on this press release. A spokesman told me that they are developing snacks. No timeline on when those snacks could come out.

But I think the market is reading is this Beyond Meat may have found a new market, snacks. They do not sell snacks now, unless you consider their plant-based meatball snacks. And then, secondarily, perhaps at some point PepsiCo tries to buy Beyond Meat. Obviously, that's on my plate today. In this type of market where everyone's looking for stock market bubbles, that's just how the market psychology is playing out.