Celsius Holdings Makes a Major Move in Energy Drinks: Should You Buy the Stock Down 68% From All-Time Highs?

Core Insights - The energy drink market is experiencing significant disruption, with Celsius Holdings emerging as a key player alongside traditional leaders Red Bull and Monster Beverage [1][2] - Celsius has announced the acquisition of Alani Nu for $1.8 billion, positioning the combined brands as the third-largest player in the North American energy drink market [3][7] Market Position and Growth - Celsius has increased its market share in North America from a negligible amount in 2020 to 11.8$5.6 billion in 2020 to $11.7 billion in 2024, with Celsius and Alani Nu contributing significantly to this growth [8] Financial Performance - Celsius and Alani Nu generated approximately$2 billion in revenue in 2024, with expectations of continued growth at a rate of 20% over the next three years, potentially reaching $3.45 billion in revenue [10] - The acquisition will increase Celsius's enterprise value to about$8.5 billion, with the stock trading at around 12 times projected earnings three years from now [11] International Expansion Potential - Celsius's international revenue was $74.7 million in 2024, growing at 37% year over year, indicating potential for significant growth outside North America [9]