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Celsius Holdings (NASDAQ: CELH) Shares Sink 18% After Weak Q2 Results Raise Growth Concerns
['David Prior']
Foreign Policy Journal
Celsius Holdings (NASDAQ: CELH) dropped 18% in a single trading session after reporting second-quarter financial results that disappointed Wall Street on both top and bottom lines.
The company posted Q2 revenue of $817.9 million, representing 11% year-over-year growth, but the figure came in below consensus analyst estimates.
The steepest concern for investors was the performance of the flagship Celsius brand itself, with sales falling almost 12% year over year during the quarter.
Red Bull and Monster Beverage command unrivaled brand strength in the segment, making it difficult for any challenger to sustain long-term market share gains.
With flagship brand sales declining and earnings under pressure, Celsius presents a high-risk proposition despite a valuation that superficially looks appealing to bargain hunters.