What Happened?
Shares of energy drink company Celsius (NASDAQ: CELH) fell 3.4% in the morning session after peer beverage company Constellation Brands (STZ) revised its fiscal 2026 outlook downward, citing challenging macroeconomic conditions. Constellation Brands updated its comparable earnings per share guidance to a range of $11.30-$11.60, a significant drop from its previous forecast of $12.60-$12.90, and now expects an organic net sales decline. The negative outlook from a major industry player appears to be weighing on investor sentiment for the broader beverage sector.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Celsius? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Celsius’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 5.1% on the news that the company announced a strengthened long-term strategic partnership with beverage giant PepsiCo, which is boosting its stake in the company by $585 million.
The agreement significantly expands the collaboration between the two companies. Under the deal, PepsiCo will acquire $585 million in newly issued convertible preferred stock, increasing its ownership in Celsius to approximately 11%. In a major portfolio shift, Celsius will acquire the Rockstar Energy brand in the U.S. and Canada from PepsiCo. Furthermore, Celsius's Alani Nu brand will move into PepsiCo's extensive distribution system. This move positions Celsius as PepsiCo's “strategic energy lead” in the U.S., managing the Celsius, Alani Nu, and Rockstar brands, while leveraging PepsiCo's vast distribution network to reach more consumers.
Celsius is up 124% since the beginning of the year, and at $60.79 per share, it is trading close to its 52-week high of $62.88 from August 2025. Investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at an investment worth $9,169.
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