Guess which A2 Milk rival's shares just rocketed 21% on US news!

Up 65% in 2024, A2 Milk shares remain the better performer, but this rival is making up ground today.

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It's a banner day for the shares of a certain Aussie A2 Milk Co Ltd (ASX: A2M) rival today.

While A2 Milk shares are up a healthy 1.9% in early afternoon trade on Thursday, shares in this ASX infant formula company just surged 20.8% to trade for 14.5 cents apiece.

After some likely bargain hunting, shares are up 18.8% at the time of writing.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.6% at this same time.

Any guesses?

If you said Bubs Australia Ltd (ASX: BUB), give yourself a virtual gold star.

Here's what's grabbed ASX investor interest today.

Bubs gains leave A2 Milk shares wanting today

The Bubs share price is racing ahead of the benchmark and A2 Milk shares after the company announced that its weekly scan revenues in the United States have topped US$1 million a week, with more than 24,000 tins sold.

That's up 25% from the third quarter's average weekly scan revenue of US$750,000.

Investor exuberance also appears to have been roused by the company reporting it moved from number six to the number one best-selling infant formula product on Amazon USA in May 2024.

Bubs also reported on ongoing progress relating to the Food and Drug Administration's permanent access pathway and clinical trial. As at 7 June, Bubs had more than 300 infant enrolments, representing 75% of its target.

And the ASX infant formula company said it has commenced the roll-out of new label tins and sizes for the US market.

Commenting on the results seeing the Bubs share price leaving A2 Milk shares far behind today, Bubs CEO Reg Weine said, "We are continuing to see exceptionally strong demand for our products in the USA, and we have now reached a new weekly scan sales record in the USA with revenue exceeding US$1 million."

Atop the strong online sales growth via Amazon, Weine said, "Pleasingly we are seeing sustained demand for our products right across the USA, from more than 5,800 bricks and mortar retail stores stocking Bubs."

Looking ahead, Weine added:

We have recently increased our target inventory levels in the US to meet the rise in demand and following the stock shortages which occurred in late 2023 and believe this strong and sustained consumer driven demand will provide a strong tailwind for growth in FY 2025.

Closer to home and addressing a potentially even larger market, Weine noted, "Our China business has now rebounded."

How have the two ASX dairy stocks been tracking?

With today's intraday gains factored in, the Bubs share price is up 8% so far in 2024.

A2 Milk shares have performed far better, rocketing an eye-watering 65% year to date.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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