77%: That’s how much a baby formula maker’s shares surged after Biden tweeted about the company
The stock surged as much as 77% in Sydney on Monday after the Food and Drug Administration said the company would provide the U.S. with at least 1.25 million cans of formula. President Joe Biden had earlier tweeted the news over the weekend, citing the equivalent volume in bottles.
The president’s tweet “should be helpful for the company’s marketing efforts, help position the brand as a safe and reliable foreign IMF manufacturer, and should be indirectly positive for sales of toddler formula,” Citigroup Inc. analysts said in a note Monday.
New Zealand formula maker A2 Milk Co. also benefited from the news, jumping as much as 13% in Wellington.
U.S. regulators have been taking steps to increase formula supplies as a shortage leaves shelves empty across the country. Bubs Australia, which has a market value of about A$420 million ($301 million), said it was working closely with the U.S. to determine how to deliver the products as quickly as possible, according to a statement.
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