What Happened:

Shares of beverage company Zevia (NYSE:ZVIA) fell 20.6% in the morning session after the company reported first-quarter results, with revenue falling below analysts' expectations. Management attributed the weak sales performance to a delay in the recovery of SKU level distribution at retailers as well as "fulfillment challenges we faced in 2023," leading to a 10% decline in volumes during the quarter. Looking ahead, Its revenue guidance for both the next quarter and the full year missed analysts' expectations. Overall, this was a mediocre quarter for Zevia PBC.

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What is the market telling us:

Zevia PBC's shares are very volatile and over the last year have had 64 moves greater than 5%. But moves this big are very rare even for Zevia PBC and that is indicating to us that this news had a significant impact on the market's perception of the business.

Zevia PBC is down 57.1% since the beginning of the year, and at $0.85 per share it is trading 81.9% below its 52-week high of $4.70 from June 2023. Investors who bought $1,000 worth of Zevia PBC's shares at the IPO in July 2021 would now be looking at an investment worth $62.29.

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