Celh stock news: Celsius Holdings (CELH) has been making headlines recently due to a combination of stock performance, analyst ratings, and strategic developments.
Celsius Holdings, Inc. (NASDAQ: CELH), the company behind the popular CELSIUS energy drink brand, has been making waves in the stock market recently, particularly over the past week as of February 23, 2025. After a tumultuous year marked by significant volatility, CELH stock has seen a dramatic surge, rebounding from a steep decline in 2024. This resurgence is largely driven by the company’s latest earnings report and a major acquisition announcement, both of which have reignited investor enthusiasm. Here’s a deep dive into what’s happening with Celsius Holdings stock and the factors influencing its current trajectory.
On February 20, 2025, Celsius Holdings released its fourth-quarter and full-year 2024 financial results, delivering a performance that exceeded Wall Street expectations. The company reported earnings of $0.14 per share on revenues of $332.2 million for Q4, surpassing consensus estimates of $0.10 per share and $327 million in sales. While quarterly revenue dipped slightly by 4.4% compared to the $347.44 million reported in Q4 2023, the earnings beat signaled resilience amid challenging market conditions. For the full year, Celsius achieved record revenue of $1.36 billion, bolstered by a 22% increase in retail sales and a 37% expansion in distribution points across the U.S., reaching 241,000 outlets.
The earnings beat was a welcome surprise for investors, especially after a year of struggles tied to the company’s distribution partnership with PepsiCo (NASDAQ: PEP). In previous quarters, oversupply issues with PepsiCo had led to inventory pileups, dragging down Celsius’ stock price and raising concerns about its growth sustainability. However, the Q4 results suggest that Celsius may be stabilizing its operations, with international sales growing 37% to $18.6 million, offsetting a 33% decline in North American revenue to $247 million. This international expansion, coupled with better-than-expected profitability, has helped shift the narrative from one of caution to cautious optimism.
The real catalyst behind CELH’s recent stock surge, however, appears to be the announcement of its $1.8 billion acquisition of Alani Nu, a fast-growing energy drink and wellness brand. Unveiled alongside the earnings report on February 20, the deal includes $1.275 billion in cash, a $25 million earn-out, and $500 million in restricted Celsius stock, with a net purchase price of $1.65 billion after accounting for $150 million in tax assets. Expected to close in Q2 2025, this acquisition positions Celsius to bolster its portfolio in the competitive “better-for-you” beverage market.
Alani Nu, founded in 2018 and known for targeting a younger, health-conscious female demographic, brings a complementary product line to Celsius, including energy drinks, protein shakes, and snacks. With estimated 2024 sales of $595 million, Alani Nu is the fourth-largest energy drink brand in the U.S., trailing only Red Bull, Monster, and Celsius itself. The acquisition values Alani Nu at roughly 2.8 times its trailing revenue and 12 times its adjusted EBITDA, a price that analysts have largely viewed as reasonable given its growth potential. Combined, Celsius and Alani Nu are projected to command a 16% share of the U.S. energy drink market, strengthening Celsius’ position against giants like Monster Beverage and Red Bull.
Investors reacted swiftly, sending CELH stock soaring over 30% on February 21, with gains peaking at 39% in pre-market trading before settling at a 23.4% increase by mid-morning. This rally pushed the stock price to around $35 per share in after-hours trading, a stark contrast to its 52-week low of $21 earlier in February. The acquisition is seen as a strategic move to counter Celsius’ slowing domestic growth and diversify its offerings, particularly as its core brand faced headwinds from the PepsiCo partnership fallout.
To understand the significance of this rebound, it’s worth revisiting CELH’s rocky 2024. The stock began the year trading near $59 but plummeted 56% to $26 by mid-February 2025, with its 52-week high of $96.11 in March 2024 feeling like a distant memory. Much of this decline stemmed from the PepsiCo distribution woes, where oversold inventory led to reduced orders—Pepsi reportedly cut its Q3 2024 orders by 100-120 million units, according to CEO John Fieldly’s comments at a September conference. This, combined with broader macroeconomic pressures like inflation and reduced consumer discretionary spending, squeezed Celsius’ margins, with its gross margin dropping to 46% in Q3 from 50.4% the prior year.
The stock’s volatility drew significant short interest, with 22% of its float sold short by early 2025. However, the recent surge has turned the tables, triggering a short squeeze that amplified gains and inflicted hundreds of millions in losses on bearish investors. At its current price of around $35, CELH trades at 6 times sales—below its three-year average of 9x—suggesting room for further upside if the Alani Nu integration succeeds and growth accelerates.
Despite the optimism, risks remain. Analysts have raised concerns about potential sales cannibalization, as both Celsius and Alani Nu target similar demographics—young, fitness-focused consumers, particularly women. With Pepsi continuing to distribute Celsius and Anheuser-Busch InBev handling Alani Nu in the near term, competition for shelf space could dampen growth. Margins are another worry, as elevated sales and marketing expenses (37.6% of Q3 revenue) and PepsiCo incentives continue to weigh on profitability.
Analyst opinions are mixed. Truist’s Bill Chappell holds a “Hold” rating, questioning Alani Nu’s brand loyalty and overlap with Celsius, while Needham’s Van Sinderen reiterates a “Buy,” citing the acquisition’s potential to drive Celsius toward a 20%+ EBITDA margin, akin to Monster Beverage. Wall Street’s consensus, based on 13 analysts, sets a $34 price target, implying a 30% upside from recent lows but reflecting caution after last year’s 70% drop.
Looking ahead, Celsius aims for $2 billion in revenue in 2025, banking on international expansion, product innovation, and the Alani Nu boost. The stock’s forward P/E of around 20, nearly $1 billion in cash, and zero debt provide a solid foundation, though execution will be key. For now, CELH’s dramatic rebound signals a potential turning point, but its ability to sustain momentum hinges on integrating Alani Nu and navigating a crowded energy drink market. Investors are watching closely as Celsius seeks to reclaim its high-flying status.
When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.
Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
