Why the Bubs (ASX:BUB) share price has gained 28% in a month

Breaking into the US market has so far proven a good move for Bubs Australia shares
The post Why the Bubs (ASX:BUB) share price has gained 28% in a month appeared first on The Motley Fool Australia. –

The Bubs Australia Ltd (ASX: BUB) share price is having a great month, despite no news having been released by the company in more than 3 weeks.

Right now, shares in Bubs are trading for 50 cents apiece. This time last month, they were going for 39 cents each. Those figures represent a 28.21% increase in the Bubs share price over the last 30 days.

While that’s impressive, perhaps more so is the fact the gains have all come off the back of a single announcement to the market.

Let’s take a look at the news driving the Bubs share price.

International ambitions

On 18 June, Bubs announced it’s set to break into the United States infant nutrition market with its Aussie Bubs range of formulas.

According to the company, the US market is worth around $5.1 billion annually with a projected forecast growth of 4% by 2025. Some 93% of the products within the US infant nutrition market are powder formulations.

What’s more, Bubs’ product will be the only Australian goat milk formula to be sold in the nation.

On the day of the announcement, the Bubs share price closed a mammoth 28% higher than its previous day’s trade.

Bubs’ products will be available for purchase in the US through Walmart Inc‘s online store and Inc.

As part of the shift, Bubs will establish a US subsidiary, Aussie Bubs, to be based in northern California. Its products will be sold on Walmart’s online store from September.

Bubs Australia share price snapshot

Despite the month’s growth, the Bubs share price is still in the red on the ASX. It has fallen 16.6% since the start of 2021 and 50.5% since this time last year.

The company has a market capitalisation of around $306 million, with approximately 612 million shares outstanding.

The post Why the Bubs (ASX:BUB) share price has gained 28% in a month appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bubs Australia right now?

Before you consider Bubs Australia, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bubs Australia wasn’t one of them.

The online investing service he’s run for nearly 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 are better buys.

*Returns as of May 24th 2021

More reading

The Bubs (ASX:BUB) share price is tumbling today
Amazon could surpass Walmart as America’s largest retailer by next year

3 reasons why the Bubs (ASX:BUB) share price could be a buy
The Bubs (ASX:BUB) share price has shot up 7% today
Why Afterpay, Betmakers, Bubs, & Starpharma shares are racing higher

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!