It's been a fairly pleasant day of green for the All Ordinaries Index (ASX: XAO) so far this Thursday. At the time of writing, the All Ords has gained a robust 1.06% at 7,112.9 points. But that's nothing compared to the Bubs Australia Ltd (ASX: BUB) share price.
Bubs shares have popped a pleasing 6.90% so far today to 62 cents a share. That comes after the baby formula company closed at 58 cents a share yesterday and opened at 59 cents this morning.
So what might be behind this marked outperformance for Bubs shares today?
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Why are Bubs shares smashing the All Ords today?
Well, it's not clear, unfortunately. Bubs haven't put out any new news or announcements themselves today. Or indeed since 20 July, when the company dropped its quarterly report. This report was received very well by investors. In the two days following its release, the Bubs share price rose by more than 12%.
As we covered at the time, this report did provide some pleasing numbers. For the three months to 30 June, the company reported a 278% rise in gross revenues to $48.1 million.
That helped Bubs bump up its full-year revenues to $104.2 million which was a 123% increase.
The company reported that it has benefitted enormously from the shortage of baby formula in the United States. Bubs also managed to increase its Chinese daigou sales by 1,201% over the quarter.
But these results have been in the public domain for more than a week. So it's a long bow to say they are responsible for today's 6% rise in the Bubs share price.
So perhaps investors are just continuing with the momentum Bubs has been enjoying since the release of that quarterly update.
We are seeing a number of smaller-cap ASX shares enjoy some impressive gains on the markets today, despite an absence of fresh news. Bubs' competitor in the baby formula space – A2 Milk Company Ltd (ASX: A2M) – is enjoying a 2.56% rise today.
And earlier, we covered how some smaller ASX shares like Laybuy Holdings Ltd (ASX: LBY) are seeing gains worth close to 100% today. Perhaps the Bubs share price has been caught up in this euphoria.
Whatever the reason for today's gains, it's certainly a good day to be a shareholder.
At the current Bubs Australia share price, this ASX All Ords share has a market capitalisation of $427.8 million.
