The Bubs Australia Ltd (ASX: BUB) share price is sinking today. Shares in the infant formula and food manufacturer are trading 3.4% lower at 44.5 cents apiece at the time of writing.
Bubs has not released any price-sensitive news to explain today's bearish price action. But the company's shares have surged more than 18% in the past 2 weeks so it's possible this could be prompting investors to cash in.
Let's take a closer look at the recent news that could potentially influence the Bubs share price performance.
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Bubs expands into the US
The Bubs share price exploded in mid-June after the company announced plans to expand into the United States infant formula market.
The company advised that some of its products would be accepted for listing on the online platforms of US retail giants Walmart Inc (NYSE: WMT) and Amazon.com, Inc (NASDAQ: AMZN).
Bubs advised the initial launch in September would include 2 products from the company's Aussie Bubs range. In addition, the company will release its first bi-lingual English and Hispanic label.
According to Bubs, the US formula market is worth a total of US$5.1 billion. In addition, the company has plans to establish a US-based subsidiary.
Bubs sells a number of different products including goat and cow's milk formulations, organic baby foods, cereals and toddler snacks. These products are already sold throughout Australia, China, South East Asia and the Middle East.
Snapshot of the Bubs share price
The Bubs share price has struggled since the start of the COVID-19 pandemic in early 2020.
The company's share price has plunged more than 50% over the past 12 months, hitting a 52-week low of 31.5 cents in May this year. Bubs shares are also down year-to-date, falling more than 26% since January.
At the time of writing, the company has a market capitalisation of $270.8 million.
