OTLY - Why Oatly Stock Tanked on Tuesday
Shares of Oatly Group (NASDAQ: OTLY) were down by 13% as of 1:33 p.m. ET Tuesday after the plant-based dairy company reported its second-quarter results.
Revenue growth accelerated from the first quarter to a rate of 21.8% year over year, but investors were looking for more. The most concerning features of the report were the bottom-line loss and management's cautionary statements about near-term business trends.
Absent the impact of foreign currency changes, Oatly's top line would have increased by 30%. However, in the current economic environment, investors have grown far less tolerant of companies that aren't showing profits. Share prices of companies that haven't been in the black have gotten slammed this year.
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Why Oatly Stock Tanked on Tuesday