The unexpected large fall in revenue growth slapped us in the face with how much their growth is dependent on Pepsi, and under Pepsi’s control as well.
I’ve been out for about two and a half weeks. If you are saying to yourself “what am I missing?”, take that slap in the face, and add all the negative publicity about health claims, and you may decide to be out too.
Except, , of course, if it all turns out to be a false alarm, Celsius has a long way up to go as a turn-around.
I’ve definitely noticed an uptick in scrutiny of energy drinks in the past few months. Celsius gets called out by name here: Young Women With Eating Disorders Are Overdoing It With Energy Drinks (msn.com)
Whatever the causes (bad press, Pepsi restocking issues, increased competition), I decided enough was enough for my tastes (sorry, bad pun). I sold out at a small loss.
I was reminded of this board’s collective Peloton journey a few years back…debates around: is this a very popular fad or truly something special? It’s hard to make that determination in the moment, but I’m better now at selling when I think that a company is more the former and less the latter.
Cramer had someone from 100x on last night. 100x gets people to sign up and tell their honest opinions of products. In turn, 100x is promising to donate lots of money to charities. This seems to be attracting a good number of participants.
Anyway, they use the data for “predictive sales” of products. In the case of CELH, they had been getting data that the health claims had been getting high marks from consumers. However, those numbers are swiftly declining and this is causing the “predicted sales” to decline.
OT: Domino’s Pizza is on the rise. People are still willing to pay for pizza vs other quick serve foods and the “taste” scores for Dominos are improving, indicating a rise in “predictive sales”.
Celsius Holdings (NASDAQ:CELH) added a bit more market share with a 15.2% sales jump, although its percentage of promotional sales was higher, according to Morgan Stanley. Shares of the energy drink upstart have shed more than 22% over the last six weeks amid concerns about moderating sales growth.
, of course, if it all turns out to be a false alarm, Celsius has a long way up to go as a turn-around.