We recently published an article titled Two of 10 Worst-Performing Stocks Fall to All-Time Lows on Tuesday. In this article, we are going to take a look at where Celsius Holdings, Inc. (NASDAQ:CELH) stands against the other stocks.

Wall Street extended a lackluster performance on Tuesday, with two of its major indices ending with marginal movements amid a series of key economic factors dampening investor sentiment.

Only the Dow Jones finished in the green territory, posting a 0.37 percent gain. In contrast, the S&P decreased by 0.47 percent while the tech-heavy Nasdaq fell by 1.37 percent.

Mirroring the mostly broader pessimism are 10 companies, with two even falling to new all-time lows. In this article, we have detailed the reasons behind their drop.

To come up with Tuesday’s worst performers, we considered only the stocks with $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)

Shares of Celsius Holdings, Inc. (NASDAQ:CELH) dropped 14.33 percent on Tuesday to end at $26.88 apiece as investors took profits following a surge last week buoyed by its recent upgrade and concerns over the recent acquisition of its competitor.

According to the company, it entered into a definitive agreement to acquire Alani Nutrition LLC for a total transaction of $1.8 billion, which includes taxes amounting to $150 million.

According to Celsius Holdings, Inc. (NASDAQ:CELH), its acquisition was part of its strategy to bolster growth. By combining with Alani Nu, the two brands are expected to hold a 16-percent market share in the energy drink sector.

The acquisition is expected to be completed in the second quarter of the year.

Meanwhile, Celsius Holdings, Inc. (NASDAQ:CELH) also earned a higher price target from TD Cowen at $30 versus $29 previously. The investment firm, however, maintained a “hold” rating on CELH’s shares.

Overall CELH ranks 5th on our list of Tuesday's worst performers. While we acknowledge the potential of CELH as an investment, our conviction lies in the belief that some 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 as promising as CELH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

 

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