The stock market dropped on Tuesday as investors assessed the latest batch of corporate earnings reports.
Overall, S&P 500 fell 0.8% to 5,815, while NASDAQ declined 1.0% to 18,316.
Tweet of the Day
https://twitter.com/GrowthStockGuy/status/1842714569501802688
Chart of the Day
Here is the ten-year chart of Celsius (CELH) as of September 18, 2024, when the stock was at $34.
Celsius will be experiencing a slowdown in sales next quarter after Pepsico (PEP) decided to cut its Celsius’ inventory by between $100 million and $120 million. This news came out after Celsius delivered a solid quarter of 65% profit growth on 23% sales growth. As of today, the company’s year-over-year revenue is expected to decline 25% next quarter, before growing 3%, 11%, and 10% in the following three quarters. So this seems like a one-quarter issue. However, year-over-year comparisons are extremely difficult. During fiscal 2023, quarterly revenue growth was 95%, 112%, 104%, and 95%. So it is expected that this year’s growth would obviously slow.
David Sharek, Founder of School of Hard Stocks, likes CELH long-term and will continue to hold it in the Growth Portfolio.
