The Marley Spoon (ASX:MMM) share price just hit another 52-week low. What's going on?

It's been a year of pain for Marley Spoon shareholders.

| More on:
A woman holds a wooden spoon in her hand with a shocked look.

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

Shares in meal-kit service Marley Spoon AG (ASX: MMM) struggled through most of Wednesday, but came out on top after nudging past yesterday's closing price.

Marley Spoon shares started the day flat before trading as low as 80 cents during intraday trading. They finished the day at 82 cents apiece, up 0.62%.

It's been a bumpy ride down south for the company these past few months, and shares are now trading at 3-month lows after coming off a high of $2.09 in September.

The Marley Spoon share price is now down 20% for the month as a result, and lags the benchmark S&P/ASX 200 Index (ASX: XJO) by a considerable amount in that time.

What's up with Marley Spoon shares lately?

Investors began selling Marley Spoon shares in droves again in October when the company released its update for the quarter ending 30 September 2021.

During the 3 months, the company grew revenue 14% year on year to 79.2 million euro. It left the quarter with 33 million euro in cash on the balance sheet – a 17% jump from the previous year.

However, investors were quick to compare Marley Spoon's H1 FY21 trading update – where sales grew by 38% – and its most recent results.

Investors were equally spooked by the company's guidance downgrade. It now estimates a lower sales growth of 26%–28% compared to previous guidance of 30%–35% growth at the top line.

The company blamed its downward revision of guidance on "volatile customer behaviour" at the time, alongside "staffing challenges, higher labour rates, and food cost inflation".

Nonetheless, investors violently sold off their Marley Spoon positions following the trading update, and the share price tanked in vertical fashion in the days afterwards. It hasn't reversed course since.

Since then, the market hasn't wanted a slice of Marley Spoon's meal-kit service. For example, today total volume of Marley Spoon shares traded was at just 30% of its 4-week average volume. For comparison, the day before its trading update, it traded on a volume of 1.25 million shares.

Without the forward earnings guidance to bite into, it appears investors have left the Marley Spoon party and show no sign of returning any time soon.

Marley Spoon share price snapshot

It's been a year of pain for Marley Spoon shareholders, with the share price collapsing 50.5% in the last 12 months. It has tanked 63.6% just this year to date.

These results are well behind the benchmark ASX 200 index's return of around 10% in the last year.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 9 January 2025

The author has no positions in any of the stocks mentioned. The Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Marley Spoon AG. The Motley Fool Australia owns shares of and has recommended Marley Spoon AG. 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 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 Australian Ethical, PYC, Resolute, and Star shares are falling today

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

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 4DS, Lynas, REA Group, and Rio Tinto shares are dropping today

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

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Computershare, Ora Banda, Origin Energy, and Vulcan shares are falling today

These shares are missing out on the good times on Thursday. But why?

Read more »

Shot of a senior scientist looking stressed out while working in a lab.
Healthcare Shares

Why did this $1.4 billion ASX 200 healthcare stock just dive 9%?

The market didn't like what this stock had to say this morning...

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why CAR Group, Myer, Neuren, and Yancoal shares are falling today

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

Read more »

A male lion with a large mane sits atop a rocky mountain outcrop surveying the view, representing the outlook for the Liontown share price in FY23
Materials Shares

Liontown shares crashed 68% in 2024. Here's why

Investors sent Liontown shares tumbling in 2024.

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

Why Mesoblast, Myer, Premier Investments, and Vulcan shares are falling today

These shares are having a tough session on Tuesday. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Alkane, Myer, Premier Investments, and St Barbara shares are sinking today

These shares are having a poor start to the week. But why?

Read more »