Why Celsius (CELH) Stock Is Trading Lower Today

Core Insights - Celsius reported a year-over-year revenue growth of 173% to $725.1 million, slightly exceeding estimates, while adjusted earnings per share were $0.42, surpassing consensus forecasts [1] - The company experienced a negative operating margin of 11%, a significant decline from the negative 1.2% margin in the same quarter last year, raising concerns about cost controls amid rapid expansion [1] - The stock price fell 23.8% in the morning session following the earnings report, indicating investor concern over deteriorating profitability despite strong revenue growth [1] Financial Performance - Revenue increased by 173% year-over-year to $725.1 million, which was slightly above market expectations [1] - Adjusted earnings per share reached $0.42, comfortably beating consensus forecasts [1] - The operating margin turned negative at 11%, compared to a negative 1.2% margin in the same quarter last year, indicating rising operating expenses [1] Market Reaction - Celsius shares are highly volatile, with 30 moves greater than 5% over the past year, suggesting that the recent news significantly affected market perception [3] - The stock has seen a substantial price drop, which may present buying opportunities for investors looking for high-quality stocks [2] - Despite the recent decline, Celsius shares are up 70.4% since the beginning of the year, although they are still trading 28.5% below their 52-week high of $64.86 [5]