Why Celsius Holdings Stock Plunged Then Recovered Today
There wasn't anything about the second-quarter financial results from Celsius Holdings (NASDAQ: CELH) to cause a sell-off in the stock. But shares dropped as much as 12.3% early Thursday before making a full recovery. As of 1:20 p.m. EDT, shares were actually about 1% higher than Wednesday's closing price.
Two things likely explain the initial plunge. The main catalyst is probably a disclosure the company put in the Securities and Exchange Commission filing it made for the quarterly results. Celsius updated investors on a lawsuit filed against the company in 2019, saying a judge granted a motion on Aug. 2, 2021, giving the lawsuit class action status. That news, along with the fact that the stock is up 56% year to date and almost 300% over the last 12 months, is likely what initially spooked investors.
Source Fool.com
