What Is Alani Nu and Is Its Growth Causing Celsius Stock to Plunge?

Core Viewpoint - Alani Nu is emerging as a significant competitor in the energy drink market, outpacing Celsius Holdings in growth since its launch in 2018 [1][2][4] Company Performance - Alani Nu achieved a remarkable revenue growth of 271% in 2021, reaching $228 million, while Celsius reported a 140% increase to $314 million in the same year [2] - Celsius' market share increased from 11.4% to 12.1% from Q1 to Q3 of 2024, indicating that it is also gaining market share despite competition [6] Competitive Landscape - Alani Nu's market share was estimated at 2.9% in Q1 2024 and increased to 3.5% by Q3 2024, showcasing its rapid growth [3] - Analyst Robert Moscow from TD Cowen downgraded Celsius' outlook due to competitive pressures from Alani Nu, contributing to a 74% decline in Celsius stock from its all-time high [4] Financial Position - Celsius has a strong financial position with over $900 million in cash and cash equivalents and zero debt, which provides a buffer against competitive pressures [7][8] - The company earned $164 million in net income through the first three quarters of 2024, reinforcing its financial strength [7] Strategic Partnerships - PepsiCo's equity investment in Celsius indicates a vested interest in the company's success, suggesting that Pepsi would support Celsius against emerging competitors [9] Investment Outlook - Celsius stock is currently trading at a lower valuation, being 36% cheaper than Monster and over 50% cheaper than its 10-year average valuation [12] - The company is viewed as having significant growth potential, making its stock an attractive option for long-term investors [13][14]