Rising Commodity Costs Likely to Spoil Profitability Prospects for Oatly

For a pure-play investment in oat milk that's listed on a major stock exchange, one would be hard-pressed to find an alternative to Oatly (NASDAQ: OTLY). The closest thing to a real threat was PepsiCo's Quaker Oat Beverage, which the soda giant discontinued less than a year after its launch.

Besides, Oatly is considered a milkless-milk pioneer, having launched way back in the 1990s before vegan millennials effectively took over the healthy-comestibles landscape. Heck, the company even managed to get Oprah Winfrey on board as an investor.

Nearly a year after Oatly's initial public offering (IPO), however, one has to wonder whether Winfrey is second-guessing her investment. The share price has tumbled from $29 to $5 -- prompting questions about Oatly's growth prospects, yes, but also perhaps whetting the appetites of audacious contrarian investors.

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Source Fool.com