Stock Performance - Shares of Celsius plunged 51.7% in 2024, with a 73% drop from its high point in the same year [1] - The stock was up 76% in the opening months of 2024 before the significant decline [1] Financial Results and Challenges - Celsius missed Q1 2024 revenue expectations due to inventory management issues with its largest customer, PepsiCo [2] - Q3 2024 revenue plunged 31% year over year, marking the first negative growth since 2018 [3] - The company's price-to-sales valuation dropped to its lowest in nearly five years [3] Industry Dynamics and Market Share - Celsius rose to the third-largest market share in the energy drink space in recent years [5] - Q1 2024 market share was 11.4%, compared to 12.1% year-to-date as of Q3 2024 [8] - Consumer spending on energy drinks decreased in 2024, leading to inventory overestimation by PepsiCo [5] Supply Chain and Bullwhip Effect - The bullwhip effect in supply chains caused pronounced adjustments due to small spending changes by customers [4] - PepsiCo's inventory correction significantly impacted Celsius' revenue [5] Future Outlook and Growth Opportunities - Celsius claims its products still resonate with consumers, with potential upside in 2025 [8] - The company is expanding into new sales channels and entering new markets, which could reignite growth [8]

Lawsuit Overview - A securities class action lawsuit has been filed against Celsius Holdings, Inc (Celsius) on behalf of investors who purchased or acquired Celsius common stock between February 29, 2024, and September 4, 2024 [1] - The lead plaintiff deadline is January 21, 2025 [1] Alleged Misconduct - Defendants allegedly made false and/or misleading statements and/or failed to disclose material information during the Class Period [2] - Celsius materially oversold inventory to Pepsi far in excess of demand, leading to a looming sales cliff where Pepsi would significantly reduce purchases [2] - As Pepsi drew down significant amounts of inventory overstock, Celsius' sales would materially decline in future periods, hurting financial performance and outlook [2] - Celsius' sales rate to Pepsi was unsustainable and created a misleading impression of the company's financial performance and outlook [2] - As a result, Celsius' business metrics and financial prospects were not as strong as indicated in Defendants' Class Period statements [2] - Defendants' statements regarding Celsius' outlook and expected financial performance were false and misleading at all relevant times [2] Lead Plaintiff Process - Celsius investors may seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel by January 21, 2025 [3] - The lead plaintiff is usually the investor or small group of investors with the largest financial interest who are also adequate and typical of the proposed class [3] - The lead plaintiff selects counsel to represent the lead plaintiff and the class, and these attorneys, if approved by the court, are lead or class counsel [3] - The decision of whether or not to serve as a lead plaintiff does not affect an investor's ability to share in any recovery [3] About Kessler Topaz Meltzer & Check, LLP - The firm prosecutes class actions in state and federal courts throughout the country and around the world [4] - Kessler Topaz Meltzer & Check, LLP has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct [4] - The firm's work is driven by a common goal to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries [4] - The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP [4]

Class Action Lawsuit Overview - The Gross Law Firm is notifying shareholders of Celsius Holdings Inc (NASDAQ: CELH) who purchased shares between February 29 2024 and September 4 2024 about a potential class action lawsuit [1] - Shareholders are encouraged to register for the class action by January 21 2025 to potentially become a lead plaintiff [2] Allegations Against Celsius Holdings - The complaint alleges that Celsius Holdings issued materially false and/or misleading statements during the class period [1] - The company is accused of deceiving investors about its business prospects and artificially inflating its stock price [1] - Certain officers directors and insiders allegedly sold over 216 million personally held shares at artificially inflated prices reaping more than $14 billion in proceeds [1] Shareholder Participation - Registered shareholders will be enrolled in portfolio monitoring software to receive case updates [2] - There is no cost or obligation for shareholders to participate in the case [2] About The Gross Law Firm - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investor rights [3] - The firm specializes in cases involving deceit fraud and illegal business practices that lead to artificial stock inflation [3]

DexCom - DexCom launched a new CGM device called Stelo, targeting non-insulin users and requiring no prescription, potentially tapping into growing health awareness [1] - DexCom's growth rate was in low single digits last year, with stock down 37% due to salesforce restructuring, but improvement in growth could lead to a rally in 2025 [3] - Investors are bearish on DexCom due to GLP-1 weight loss drugs, assuming reduced need for CGMs as diabetics lose weight, though this may not reflect the broader market [10] Celsius Holdings - Celsius Holdings faced a 31% revenue drop in Q3 2024, attributed to PepsiCo reducing inventory, raising concerns about demand [7][8] - The company's stock lost over half its value in 2024, but potential remains in the sugar-free energy market if growth resumes [8][9] - Investors may wait for confirmation of a one-time issue before considering Celsius as a rebound candidate [9] Nike - Nike's market capitalization dropped 30% in 2024 due to slowing demand, with revenue down 8% in the latest quarter [5][11] - The company has a new CEO focused on revitalizing the brand and improving sales performance [11] - Nike's stock is trading near its 52-week low, potentially offering a buying opportunity for bullish investors [4]

Company Overview - Celsius Holdings (NASDAQ: CELH) has experienced significant ups and downs, including being delisted in 2012 due to poor performance [1] - In 2010, the company generated revenue of approximately $8 million [1] Analyst Perspective - The company is considered an intriguing investment thesis due to its successful product [1] - The analysis focuses on fundamental aspects, aiming to identify undervalued stocks with growth potential [1]

Investment Strategy - The article suggests positioning in undervalued stocks that are mispriced by the market as a strategy for 2025 [1] - The focus is on identifying potential multibaggers while managing portfolio risk through diversification [2] Service Features - The service provides various model portfolios and stock picks with identifiable catalysts [2] - It offers daily updates, real-time alerts, and access to community chat for direct interaction with the analyst [2] Analyst's Position - The analyst currently has no stock, option, or derivative positions in the mentioned companies but may initiate a long position in CELH within the next 72 hours [2]

Lawsuit Overview - A class action securities lawsuit has been filed against Celsius Holdings Inc (NASDAQ: CELH) on behalf of investors who suffered losses between February 29, 2024, and September 4, 2024 [1] - The lawsuit alleges securities fraud during this period [1] Allegations - Defendants are accused of making false statements and/or concealing information about Celsius' business prospects [2] - The company allegedly deceived the investing public, artificially inflating the market price of Celsius common stock [2] - Certain officers, directors, and insiders reportedly sold over 21.6 million personally held shares at artificially inflated prices, generating more than $1.4 billion in proceeds [2] - Plaintiffs and class members allegedly purchased Celsius common stock at inflated prices and suffered damages when the true facts were revealed [2] Legal Process - Investors who suffered losses during the relevant period have until January 21, 2025, to request appointment as lead plaintiff [3] - Class members may be entitled to compensation without incurring out-of-pocket costs or fees [3] Law Firm Background - Levi & Korsinsky, LLP has 20 years of experience in securities litigation [4] - The firm has secured hundreds of millions of dollars for aggrieved shareholders [4] - Levi & Korsinsky has been ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years [4] - The firm employs over 70 professionals and specializes in complex securities litigation [4]

Company Performance and Challenges - Celsius Holdings (CELH) shares have declined by 58 percent year-to-date, facing renewed pressure after a key analyst lowered its price target due to concerns about sales and the impact of its distribution agreement with PepsiCo [1] - The company's stock dropped more than 11 percent on September 4, 2024, following a presentation revealing a $100 million to $120 million shortfall in PepsiCo orders compared to the previous year [8] - On May 28, 2024, Celsius shares fell nearly 13 percent after Nielsen data indicated a slowdown in sales growth, with analysts raising concerns about a significant sales contraction as PepsiCo reduced inventory levels [5] Financial and Operational Issues - Celsius is accused of failing to disclose critical issues, including excessive inventory shipped to PepsiCo beyond actual consumer demand, a projected decline in sales, and overstated business metrics and financial forecasts [2] - The revised distribution agreement with PepsiCo is expected to have a greater-than-expected negative impact on fourth-quarter revenue, according to Roth MKM analysts [4] - PepsiCo carried several million excess cases of Celsius products over the past 18 months, contributing to the company's financial challenges [8] Legal and Regulatory Actions - A securities class-action lawsuit alleges that Celsius misled investors about its operations and prospects, prompting an investigation by Hagens Berman [7] - Hagens Berman is investigating whether Celsius deliberately concealed the extent of its inventory buildup at PepsiCo [3] - The class period for the lawsuit is from February 29, 2024, to September 4, 2024, with a lead plaintiff deadline of January 21, 2025 [7] Analyst and Market Reactions - Roth MKM reduced its price target on Celsius shares to $38 from $40, citing anticipated higher promotional allowances in the fourth quarter and the negative impact of the revised distribution agreement with PepsiCo [4] - The company's diminished valuation is attributed to slowing sales, revised financial forecasts, and the shareholder lawsuit [1]

Investment Analyst Background - Amrita runs a boutique family office fund in Vancouver, focusing on sustainable, growth-driven companies that maximize shareholder equity [1] - She co-founded the fund after 5 years in high-growth supply-chain startups in San Francisco, where she led strategy and worked with venture capital firms [1] - Amrita also runs an award-winning newsletter, The Pragmatic Optimist, which focuses on portfolio strategy, valuation, and macroeconomics [1] - Her work emphasizes democratizing financial literacy and simplifying complex financial concepts [1] Investment Thesis - The analyst initiated a "buy" rating for Celsius (NASDAQ: CELH) in July with a price target of $66 [1] - The stock is down 47% from its May 2024 high [1] Disclosure - The analyst holds a beneficial long position in shares of PEP and AMZN through stock ownership, options, or other derivatives [2] - The article expresses the analyst's own opinions and is not compensated by any company mentioned [2]

Investment Strategy - The investment strategy focuses on companies with strong qualitative attributes, aiming to purchase them at attractive prices based on fundamentals and holding them indefinitely [1] - The portfolio is concentrated to avoid underperforming investments and maximize exposure to high-growth opportunities [1] - Companies may be rated as 'Hold' if their growth potential is below the threshold or if downside risks are too high [1] Analyst Background - The analyst holds an MBA and an L.L.B in law, and works as a financial analyst at a large pension fund [1] Disclosure - The analyst has no stock, option, or derivative positions in the mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article expresses the analyst's own opinions and is not compensated by any company mentioned [2] - Seeking Alpha's disclosure states that past performance does not guarantee future results and no investment advice is provided [3] - Seeking Alpha is not a licensed securities dealer, broker, or investment adviser, and its analysts may not be licensed or certified [3]