Why is the A2 Milk (ASX:A2M) share price down almost 3% on Thursday?

This comes despite no new announcements today.

| More on:
milk asx share price falling represented by sad child with glass of milk

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) is having a rather shaky start to trading this Thursday. At the time of writing, the ASX 200 is down 0.099% to 7,347 points. One ASX share that is faring worse today though is A2 Milk Company Ltd (ASX: A2M).

A2 Milk shares are currently down a nasty 2.52% so far today to $6.95 a share. This fall continues a trend we have seen playing out all week. Since Monday morning, A2 shares are now down near 4%, somewhat reversing the recent recovery in A2 Milk shares.

Remember, this is an ASX 200 share that has had a very rough 12 months or so. The A2 Milk share price is still down more than 40% year to date, and almost 65% down over the past year. A series of earnings downgrades, largely sparked by a collapse in the Chinese-driven daigou trade, are largely to blame here.

In saying that, we have also seen some strong signs of life in recent months too. Back in mid-May, A2 Milk shares bottomed out at a new multi-year low of just $5.04 a share. Since then, the company is now up an impressive 35%, even after today's fall.

But let's get back to why the A2 Milk share price is under pressure today. What's going on?

Why is the A2 Milk share price under pressure today?

Well, the first thing to note is that there are no official news or announcements out of the company today that can easily explain this fall.

But we are seeing a number of ASX shares today that are falling by more than the ASX 200 itself. Although it might not seem like it after the year A2 has had, this company used to be thought of as a high-flying ASX growth share.

As such, it might be reacting alongside other ASX growth shares to a sharp sell-off over in the US markets last night. Yesterday's session on the US markets saw shares like Tesla Inc (NASDAQ: TSLA), Nio Inc. (NYSE: NIO) and GameStop Corp. (NYSE: GME) sell off heavily, all losing more than 2% (nearly 7% in GameStop's case).

Today on the ASX, not only is A2 Milk falling, but we also see similar moves from growth shares like Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P) and Bubs Australia Ltd (ASX: BUB). Perhaps the A2 Milk share price is just being caught up in a sell off in the 'growth shares region' of the market.

Whatever the reason, it's certainly been an interesting day for A2 Milk shares so far. At the current A2 Milk Company share price, the company has a market capitalisation of $5.3 billion.

Should you invest $1,000 in Fortescue Metals Group right now?

Before you buy Fortescue Metals Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Fortescue Metals Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Sebastian Bowen owns shares of Tesla and A2 Milk. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, NIO Inc., Tesla, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Kogan, Monash IVF, OFX, and ResMed shares are falling today

Why are these shares taking a tumble today? Let's find out.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Appen, DroneShield, Gentrack, and New Hope shares are dropping today

These shares are starting the week in the red. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Dexus, Dusk, Fletcher Building, and Paladin Energy shares are falling today

These shares are ending the week in the red. But why?

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Treasury Wine shares: Buy, hold, or sell? Here's Macquarie's take

What is Macquarie forecasting for Treasury Wine shares amid the CEO’s unexpected exit?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Newmont, NRW, Peet, and Treasury Wine shares are dropping today

Let's find out why investors are selling down these shares on Thursday.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aristocrat, EBR, GQG, and Insignia shares are tumbling today

These shares are having a tough time on hump day. Let's find out why.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Healius, Light & Wonder, REA Group, and Regis Resources shares are falling today

These shares are ending the week in the red. Let's find out why.

Read more »