Why Celsius Stock Plunged 52% Last Year
Shares of energy drink company Celsius (NASDAQ: CELH) plunged 51.7% in 2024, according to data provided by S&P Global Market Intelligence, which is bad enough. But in the opening months of the year, the stock was up 76%. This means that while it dropped 52% for the year, it dropped a whopping 73% from its high point in 2024.
Rumblings of a problem began after Celsius reported financial results for the first quarter of 2024 in May. The company missed expectations for revenue -- rare for this high-growth business. Management mentioned that its largest customer, which is through a distribution agreement, was having inventory management issues. Otherwise, its Q1 revenue would have lived up to expectations.
Investors mostly shrugged off this concern at the time. But as the year rolled on, it was clear that this inventory issue was a major headwind for Celsius. And by the third quarter of 2024, the company's revenue plunged 31% year over year. This was the first time it posted negative growth since 2018.
Source Fool.com
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