Celsius Holdings, Inc. (CELH) plummeted 5.25% on Monday, underperforming the broader market on investor concerns about the company's growth prospects.
The energy drink maker's stock tumbled despite reporting better-than-expected Q4 results and announcing an acquisition deal aimed at rekindling growth. However, analysts remain cautious about how far Celsius can expand in the increasingly competitive and subdued energy drink category. Heightened competition and softening consumer sentiment towards high-priced energy drinks appear to be weighing on the company's outlook.
Celsius' shares had previously surged nearly 260% in the two years through May 2023, before slumping as much as 78% as its rapid expansion hit a bottleneck. This highlights the volatile trading patterns common among high-growth consumer stocks, which can experience wild swings based on shifts in earnings momentum.