Why a short seller thinks $11 billion Oatly is more overvalued than Beyond Meat: by chloesorvino
When it comes to food stocks on a tear, it’s hard to find two better examples than Swedish oat- milk darling Oatly and plant-based protein leader Beyond Meat. Both have scored sizable market shares of emerging new corners of the food market and have landed soaring valuations as a result.
“We think Oatly is worse than Beyond Meat,” Axler says, zeroing in on a gross margin that is far weaker than reported and the high cost of winning market share. The suggested readjustment shaves off around 7 percentage points off Oatly’s 2020 gross margins: 23.7% compared to the reported 30.1%. Axler is a former investment banker at Credit Suisse who started Spruce Point in 2009 amid the global financial crisis, and had early success shorting U.S.-listed Chinese, and holding activist interests in companies including Build-A-Bear. He expects Oatly’s average selling prices to go down over time, which will put even more pressure on profit margins.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Why A Short-Seller Thinks $11 Billion Oatly Is More Overvalued Than Beyond MeatNow that one short-seller, Spruce Point Capital, has gone public against Oatly, investors are left wondering if Oatly is on the precipice of a crash.
Leer más »
Why A Short Seller Thinks $11 Billion Oatly Is More Overvalued Than Beyond MeatNow that one short seller, Spruce Point Capital, has gone public against Oatly, investors are left wondering if Oatly is on the precipice of a crash.
Leer más »
Is Oatly Really Eco-Friendly?In its quest to expand (and avoid more shortages), Oatly has gotten funding from private equity and a Chinese state-owned conglomerate.
Leer más »
Why Ben & Jerry's decision scares the fudge out of Israel's leadersThe beloved ice cream company's choice to stop selling in occupied territories could pave the way for similar decisions from other major companies.
Leer más »
Senate Votes Against Advancing Infrastructure Package – Here’s Why Senators Say It’s Not DeadMembers of the bipartisan infrastructure group predict they could pass a motion to proceed on the package by next week.
Leer más »
Why the Delta variant is spreading so much faster than other coronavirus strainsWorldwide, there is an alarming surge in coronavirus cases -- and health experts say a key factor in this latest wave is the highly contagious Delta variant. Here's what else you need to know about the variant, including why it's spreading so quickly.
Leer más »