What's going on?

Shares of recent stock market debutants Beyond Meat and Zoom Video Communications rose on Friday after both companies� maiden updates surpassed forecasts.

What does this mean?

Beyond Meat�s plant-based �beef� burger sales for the quarter grew more than anticipated. Its losses sprouted too, but the vegan company now expects to break even this year and revenue to exceed $210 million � more than analysts were expecting.


Zoom�s quarterly sales more than doubled from the year prior and blew past investors� expectations, as did the company�s profit. Zoom also lifted its annual earnings forecast, anticipating it�ll now make more than previously predicted.

Why should I care?

For markets: The higher they rise, the further they (may) fall.

Two sets of better-than-expected results attracted investors like dairy-free dessert does a vegan. Beyond Meat�s stock had already quadrupled since its May initial public offering (IPO) and rose a further 40% on Friday. Zoom�s stock flew up 18% further, having ascended over 200% since it went public in April. But flying so close to the sun may singe both stocks: after going public, a company�s shareholders are often unable to sell their stock for a period (known as a �lock up�). At the end of that period, several early investors may choose to sell their shares at once � and pocket high profits � which could push stock prices lower.

For you personally: To dream the impossible dream.

Fresh stocks capture the imaginations of investors, who try to figure out how they�re likely to do and whether they�re therefore worth backing. Another perhaps dreamworthy household name � exercise equipment company Peloton � cycled papers for its own IPO over to US regulators on Wednesday; it�s likely to be worth at least $4 billion. A company�s share price usually rises on its first day of listing � but more than half of companies� stock prices then fall below where they began after five years.