We recently published a list of 10 Companies Mirror Wall Street Downturn. In this article, we are going to take a look at where Celsius Holdings, Inc. (NASDAQ:CELH) stands against other companies mirroring Wall Street downturn.

Wall Street’s main indices finished the shortened trading week in the negative territory, dampened by labor market data that came in much hotter than expected. The news fueled concerns that the Federal Reserve will not slash interest rates again.

Both the Dow Jones and the Nasdaq Composite dived by 1.63 percent on Friday, while the S&P 500 declined by 1.54 percent.

Ten companies mirrored a wider market downturn amid a series of catalysts that dampened investing appetite. This article explores the reasons behind their decline.

In Friday’s biggest losers, we only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A hand pouring a cool can of a carbonated non-alcoholic beverage with a smiley face on it.

Celsius Holdings Inc. (NASDAQ:CELH)

Energy drinks and supplements maker Celsius Holdings, Inc. (NASDAQ:CELH) saw its share prices drop by 7.76 percent to end the day at $26.76 each following a lawsuit that claimed the company made false or misleading statements and failed to disclose crucial information.

Specifically, the lawsuit alleged that Celsius materially oversold inventory to PepsiCo, Inc., significantly exceeding demand which set the stage for a future sales decline as Pepsi was expected to sharply reduce its purchases.

As Pepsi worked through the inventory overstock, Celsius Holdings, Inc.'s (NASDAQ:CELH) sales were projected to drop substantially, negatively affecting the company’s financial performance and outlook. The lawsuit further claimed that Celsius’ sales rate to Pepsi was unsustainable and gave a misleading impression of the company’s overall financial health and future prospects.

Overall, CELH ranks 8th on our list of companies mirroring Wall Street downturn. While we acknowledge the potential of CELH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CELH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.