Why Is Lifeway Foods (LWAY) Stock Down 25% Today? Market Plunge Sends Shockwaves Through Investors

Lifeway Foods shares crater 25% in single-day bloodbath—here's what triggered the massive selloff.

Earnings Miss Sparks Panic

The kefir king delivered numbers that fell flat with analysts, missing revenue projections by a wide margin. Supply chain costs chewed through margins while consumer demand softened unexpectedly.

Institutional Exodus Accelerates

Major funds dumped positions faster than expired dairy products—no one wants to hold the bag when guidance gets slashed. Retail investors got caught holding the dip a bit too literally this time.

Broader Market Headwinds Bite

Even healthy stocks are getting milked in this macro environment. Rising rates make growth stories harder to swallow—especially when quarterly results curdle on delivery.

Another reminder that sometimes the market doesn't just price in risk—it blends it, cultures it, and sells it back to you at a premium before shorting the container.

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Lifeway Foods noted, “With the distraction of Danone’s unsolicited proposal now behind us, we will continue to focus on executing our growth strategy to create value for all our shareholders, employees, partners and customers.”

Lifeway Foods noted that its board of directors has created a Strategic Review Committee to handle its strategic plan. This board is made up of independent directors. The company also highlighted its recent financial performance, including a year-over-year 18% increase in revenue to $53.9 million and $39.1 million in net sales during the first two months of Q3 2025, which is a 20% year-over-year increase.

Lifeway Foods Stock Movement Today

Lifeway Foods stock was down 23.12% in pre-market trading on Thursday, following a nearly 1% rally yesterday. The shares have increased 36.37% year-to-date and 55.14% over the past 12 months. Today’s news came with heavy trading, as some 237,000 shares changed hands, compared to a three-month daily average of about 77,000 units.

Is Lifeway Foods Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Lifeway Foods is Moderate Buy, based on a single Buy rating over the past three months. With that comes a $33 price target for LWAY stock, representing a potential 2.42% downside for the shares.