Shares in Bubs Australia Ltd (ASX: BUB) are soaring today, despite no news having been released from the company. At the time of writing, the Bubs share price is 48 cents – 6.74% higher than its previous close.
The last time we heard from the formula and baby food maker was Friday last week when the company announced it was breaking into the US formula market.
Let's take a look at the news Bubs announced last week.
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On Friday last week, Bubs announced some of its products are to be stocked in the US by Walmart Inc's (NYSE: WMT) online platform and Amazon.com, Inc. (NASDAQ: AMZN).
The company's products are already on the Australian Amazon site.
Come September, US customers will be able to get their hands on Bubs' Aussie Bubs formula products from the two retailers.
The news saw the Bubs share price rocket 28.95% higher on Friday.
Between then and yesterday's close, shares in Bubs dropped 9.09%. Today, they've skyrocketing once more.
According to the Bubs' release, the US infant and toddler formula market is worth US$5.1 billion annually.
After its introduction, Bubs will be providing the US market's only Australian goat milk formula product.
The good news was a welcome change for Bubs, which has faced challenges due to COVID-19.
Before Australia's tough border restrictions were implemented to stave off the global pandemic, a large portion of Bubs' business came from the daigou market.
This is a similar story to those of many ASX-listed companies.
Bubs share price snapshot
The Bubs share price needs all the good news it can get as it battles a tough year on the ASX.
Currently, shares in Bubs have dropped 20% year to date. They have also fallen 52% since this time last year.
The company has a market capitalisation of around $272 million, with approximately 612 million shares outstanding.
