What Happened?

Shares of energy drink company Celsius (NASDAQ:CELH) jumped 39% in the pre-market session after the company delivered exceptional fourth quarter 2024 results, which blew past analysts' EBITDA, EPS, and revenue estimates, suggesting the struggles surrounding its controversy with Pepsi, where it oversold inventory to the behemoth, could be approaching the rearview mirror. Separately, the company announced its acquisition of Alani Nu, a popular up-and-coming energy drink brand. Zooming out, we think this was a solid quarter.

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What The Market Is Telling Us

Celsius’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. But moves this big are rare even for Celsius and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 4 months ago when the stock gained 14.9% on the news that Wall Street analysts provided positive updates on the company. Stifel observed improving sales trends, adding, "Energy drink trends should accelerate led by comparables, innovation, [and] pricing." Additionally, Piper Sandler's findings confirmed Celsius's popularity among teenagers. These updates are supportive of improved demand for Celsius's offerings while underscoring the company's strong positioning in the competitive energy drink market.

Celsius is up 19.9% since the beginning of the year, but at $32.62 per share, it is still trading 66.1% below its 52-week high of $96.11 from March 2024. Investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at an investment worth $15,291.

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