Why Celsius Stock Plummeted This Week
Shares of Celsius (NASDAQ: CELH), the third-best-selling energy drink brand in the United States, have plummeted 16% in the past week as of 1:45 p.m. ET Thursday, according to data provided by S&P Global Market Intelligence.
Presenting at the Barclays Global Consumer Conference on Wednesday, Celsius admitted that orders from (its largest distributor) would be down by $100 million to $120 million in the third quarter compared to the same period last year. With sales to PepsiCo accounting for 59% of the company's revenue, the market remained worried over Celsius' slowing growth rates, leading to a stock price drop of 67% from its 2024 highs.
In the two years before the company's partnership with PepsiCo was finalized in August 2022, Celsius delivered average sales growth of over 100%. Then PepsiCo took over as Celsius's distributor and loaded up on inventory throughout the first year of their partnership to ensure that it could meet consumers' demands.
Source Fool.com
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