Why Celsius Stock Is Skyrocketing This Week
Shares of the third-largest energy drink brand in the United States, Celsius (NASDAQ: CELH), were up 44% this week as of 11 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.
While the company reported acceptable fourth-quarter results on Thursday, its announcement of a significant acquisition stole the show and led to a skyrocketing price.
In an excellent move to divert attention from somewhat turbulent 2024 results, Celsius announced that it had acquired Alani Nu, the fourth-biggest energy drink brand in America, for $1.65 billion. Celsius paid less than 3 times sales and 12 times "fully synergized" earnings before interest, taxes, depreciation, and amortization (EBITDA) for Alani Nu.
Source Fool.com
