American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

CELH stock analysis: is Celsius a buy after the $17 billion wipeout?

by admin February 19, 2025
February 19, 2025
CELH stock analysis: is Celsius a buy after the $17 billion wipeout?

Celsius Holdings stock price has collapsed, turning a company that was highly popular among investors into a toxic one. It has collapsed from near $100 in 2024 to the current $22. It has had a $17 billion wipeout as its market cap has crashed from $22 billion to $5 billion. So, is the CELH stock a good buy ahead of earnings?

Celsius Holdings growth has faded

Celsius, a manufacturer of energy drinks, has had a rollercoaster in the past few years. It took off in 2020 when it was trading at less than $2 and then surged to near $100 last year as demand for its drinks rose in the US.

The CELH stock surge also happened as the company inked a distribution deal with PepsiCo, the biggest competitor to Coca-Cola. That partnership mirrored that of Monster Beverages and Coca-Cola.

The idea is that Pepsi would distribute Celsius products and earn a commission doing so. It is a mutually beneficial deal since Celsius would not need to invest in logistics. 

These actions helped Celsius Holdings to become the fastest-growing company in the energy drinks industry. Its annual revenue jumped from $75.1 million in 2019 to over $1.38 billion in 2023.

Recently, however, there are signs that the growth momentum has faded even as the company focuses on international expansion. The most recent results showed that its third-quarter revenue crashed by 31% to $265 million. 

Its gross margin also dropped by 440 basis points to 46%, while its net income crashed by 92% to $6.4 million. These numbers were much weaker than what analysts were expecting. The data confirmed multiple Nielsen data that showed that its shipments to retailers continued falling. 

CELH earnings ahead

The next important catalyst for the CELH stock price will be its earnings, which are scheduled on Thursday. These numbers will provide more color about its performance and whether its business improved. In a note, a WedBush analyst told Invezz:

“A look at the recent Nielsen data shows that Celsius Holdings business is not doing all that well. My base case is for its fourth-quarter revenue to come in at $305 million, a big drop from the $347 million it made a year earlier. I also expect that its international business to account for a small share of its business.”

His estimate is lower than the average forecast among 15 Wall Street analysts. These analysts anticipate that the total revenue will come in at $330 million, down by 4.78% from a year earlier. That will bring its annual revenue to $1.36 billion. 

Analysts also anticipate that Celsius earnings per share will drop to $0.1 from $0.15 a year earlier. Signs that the business is stabilizing will likely lead to a higher Celsius stock price.

Read more: CELH stock price forms a bullish divergence: is Celsius a buy?

Celsius Holdings stock price forecast

The daily chart shows that the CELH share price has collapsed in the past few months. This crash happened after it formed a double-top pattern at $100. A double-top is a popular bearish reversal pattern that leads to more downside over time.

CELH stock has remained in a tight range this year as investors wait for the next eanings. The accumulation and distribution indicator has continued falling. It has formed a small falling wedge pattern, a popular bullish reversal sign.

Therefore, the stock may stage a strong comeback if its earnings are better than estimates. If that happens, the next point to watch will be at $32.6, the highest swing in December last year. A crash below $20 is also possible if the numbers are worse than expected.

The post CELH stock analysis: is Celsius a buy after the $17 billion wipeout? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Zoom Video stock price analysis ahead of earnings: time to buy?
next post
GBP/USD forecast: why is the pound rising during stagflation?

Related Posts

Atlantic Lithium Applies for Listing on the Ghana...

April 2, 2024

Top 4 crypto tokens to buy as they...

January 12, 2025

Sui price prediction: 2 reasons it could hit...

May 23, 2025

Rolls-Royce share price is recovering: is it a...

April 10, 2025

What Was the Highest Price for Uranium? (Updated...

April 6, 2024

Integrated Cyber Solutions Unveils Joint Venture Partnership with...

April 3, 2024

From the Bronze Age to the Green Revolution:...

April 24, 2024

Lucid stock price could be at risk amid...

January 9, 2025

Nifty 50 Index stocks to watch next week:...

August 2, 2025

Central Banks Need to “Raise Their Game” as...

June 28, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved