The stock market fell sharply on Wednesday as the Federal Reserve signaled only two rate cuts in 2025. This was after the Central Bank reduced rates by 25 basis points to the 4.25%-4.5% range.
Overall, S&P 500 dropped 3.0% to 5,872, while NASDAQ decreased 3.6% to 19,393.
Tweet of the Day
Good rundown of the reason for the stock market selloff today: https://t.co/43WaF4bOiX
— David Sharek (@GrowthStockGuy) December 19, 2024
Chart of the Day
Here is the ten-year chart of Celsius (CELH) as of December 9, 2024, when the stock was at $30.
An inventory adjustment hit Celsius hard last quarter as the company failed to make a profit with revenue falling 31%. This was after PepsiCo (PEP), CELH’s largest distributor, reduced orders as it implemented a sizable supply chain optimization program. In addition, retailer discounts created challenges that impacted revenue.
Still, international expansion offers hope for investors, as sales outside the US rose by 37% last quarter, led by growth in Canada, the UK, and new markets in Australia and New Zealand. However, international sales are still just 7% of overall revenue.
CELH has a small holding in our Growth Portfolio.
