What Happened?

Shares of coconut water company The Vita Coco Company (NASDAQ:COCO) fell 11.9% in the afternoon session after short seller Ningi Research published a bearish research report that raised concerns about the company's business, including "stalling sales and Costco contract loss.". Vita Coco has yet to respond to these concerns.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Vita Coco? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Vita Coco’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for Vita Coco and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 28 days ago when the stock dropped 12.7% on the news that the company reported weak fourth-quarter 2024 results with full-year revenue guidance that slightly missed expectations. 

On the other hand, revenue exceeded projections. Adjusted EBITDA also topped expectations, though earnings were in line. Overall, this quarter could have been better, as strong profit growth was overshadowed by a softer full-year revenue outlook​.

Vita Coco is down 10% since the beginning of the year, and at $31.62 per share, it is trading 21.5% below its 52-week high of $40.30 from February 2025. Investors who bought $1,000 worth of Vita Coco’s shares at the IPO in October 2021 would now be looking at an investment worth $2,339.

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