The Celsius Holdings stock price has imploded in the past few months, ending one of the biggest rallies on Wall Street. It initially soared from $1.82 in January 2020 and peaked at near $100 last year. It has now erased most of those gains and is trading at $25, a trend that may continue this year.
CELH stock has plunged as growth faded
Celsius Holdings share price has crashed as the company’s growth faded. The most recent results revealed that the company’s growth has decelerated. These numbers showed that its third-quarter revenue dropped by 31% to $265.7 million.
Most of this revenue drop was from the United States when its revenue dropped by 33% to $247 million.
While its international business is growing, the trajectory is not all that strong. Its international division grew by 37% to $18.6 million. This is notable since the company has been banking on this division for a long time. It has already expanded its products are Canada, UK, Ireland, Australia, New Zealand, and France.
The nine-month revenue grew by just 9% to $1.02 billion, up from $970 million in the same period a year earlier.
This growth slowdown is notable since Celsius was one of the fastest-growing companies a while ago. For example, the firm had an annual revenue rose to $1.318 billion in 2023, up from $653 million a year earlier.
Read more: Celsius Holdings stock: The music has stopped: now what?
The next key catalyst for the CELH stock price will be the upcoming earnings, which will come out in March. Analysts expect the numbers to show that its fourth-quarter revenue dropped by 3.8% to $334 million.
These results will provide more color about its business and whether its revenue growth returned. Most importantly, they will provide more information about its international business and its newly launched brands.
Analysts expect that the Celsius Holdings annual revenue for 2024 will be $1.36 billion, a 3.14% increase from 2023. They also expect that the annual revenue in 2025 will be $1.57 billion.
Meanwhile, analysts’ average Celsius stock price forecast is $38.60, much higher than the current $25.35. Some of the company’s most optimistic analysts are UBS, Needham, Morgan Stanley, and Roth MKM.
Celsius Holdings stock price analysis
The weekly chart shows that the CELH share price formed a double-top chart pattern at $99. This is one of the most bearish patterns in the market. It has already crashed below $67.3, the double top’s neckline and its lowest point on April 15.
It has also almost formed a death cross pattern as the 50-week and 200-week moving averages cross each other. Like a double-top, it is one of the most bearish signs in the market.
On the positive side, the stock has formed a falling wedge chart pattern, which is comprised for two falling trendlines that are about to converge. The MACD and the Relative Strength Index (RSI) have formed a bullish divergence pattern.
Therefore, the stock may have a strong bullish breakout as traders wait for its earnings in the coming weeks. If this happens, the next level to watch will be the 200-week moving average at $37.90, up by almost 50% from the current level.
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