“Monster saw a small bounce when it reported, but mostly because it also announced a big buyback — I’m not particularly impressed with their latest numbers,” he said. “Celsius, on the other hand … gave us a noisy quarter that masked the true strength of the business.”
Cramer said he wasn’t impressed with Monster’s recent earnings miss, saying he thinks the stock would have immediately sold off if not for the buyback announcement. Celsius also reported an earnings miss, but he noted that the company’s margins grew higher than expected.
Celsius’ management said its revenue loss came from “inventory movements” from PepsiCo, its largest distributor. While tighter inventory from PepsiCo isn’t ideal, Cramer said he thinks Celsius will be fine moving forward because the rest of its business is solid.
According to Cramer, there are a few more reasons to be bullish on Celsius. For example, the company continues to take market share in the sector. Cramer added the company has only just started to expand internationally, and this could be an upside for investors. He acknowledged that Celsius stock has started to rebound — finishing up 6.4% on Thursday — but said it’s still a good time to buy since it remains down from its highs.
“At the end of the day, though, you want to own shares of the company that’s taking market share like Celsius, not the ones that are losing share like Monster,” he said.
Celsius declined to comment, and Monster did not immediately respond to request for comment.
Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
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