The Bubs (ASX:BUB) share price has fallen 17% in a month. Here's why

Bubs' bad run has continued over the past month.

The Bubs Australia Ltd (ASX: BUB) share price is slipping today despite no news having been released by the company.

Right now, the Bubs share price is 42 cents, 1.19% lower than its previous close.

Today's dip marks the most recent of Bubs' ASX woes. The Bubs share price has now fallen 17% in a month.

Let's take a look at what's been weighing on Bubs' shares lately.

person holding hand to head in despair while holding a glass of milk with the other hand.

Image source: Getty Images

The month that's been for Bubs

Bubs has only released a single piece of price-sensitive news to the market over the past month.

That news came in the form of a trading update, to which the Bubs share price reacted poorly.

The update stated the company's financial year 2021 gross revenue was $46.8 million – 24% lower than the previous financial year.

However, its revenue over the fourth quarter was 8% higher than that of the third quarter. Additionally, the second half brought 10% more revenue than the first half did. Yet they both saw less revenue than their respective previous comparable periods.

The company stated the revenue slump was due to COVID-19.

Bubs has been hit particularly hard throughout the pandemic, largely due to the impact it's had on daigou channels.

It wasn't all bad news though. The company announced it has shipped the first batch of its Aussie Bubs formula to its new US retailers. The formula is destined to be stocked by Amazon.com and Walmart's online store next month.

Bubs also reported it had $27.9 million in cash reserves – enough to fund its operations for another 11 quarters.

Despite the company's optimistic spin, the Bubs share price fell 8.7% over the 3 sessions following the trading update's release.

The company also announced a new addition to its board last month.

Intellectual property, brand, and consumer lawyer Katrina Rathie has been appointed to Bubs' board. Rathie's appointment means the board is now gender-balanced.

Bubs share price snapshot

It's not only been a bad month on the ASX for Bubs.

Bubs' shares have fallen 31% year to date. They're also trading for 54% less than they were this time last year.

The company has a market capitalisation of around $257 million, with approximately 612 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

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.

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