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- 🥤 Cold on Celsius
🥤 Cold on Celsius
Plus, one of Justin Bieber's ex-girlfriends is now a billionaire...
Happy Friday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟥 | US stocks fell on Friday. The S&P 500 fell 1.7%, marking its worst week since March 2023, as investors reacted to a weak August jobs report and sold leading tech stocks. The Nasdaq dropped 2.6%, and the Dow Jones slid 1%.
📈 | One Notable Gainer: Nio's shares rose 2% following a JPMorgan upgrade to overweight from neutral, signaling potential recovery after a challenging year for the Chinese electric vehicle maker.
📉 | One Notable Decliner: Super Micro Computer shares dropped 6% after JPMorgan downgraded the stock to neutral, citing uncertainty around its regulatory compliance and delayed 10-K filing, while also cutting the price target from $450 to $500.
🥤 | Tomorrow's Trade: Cold on Celsius. Scroll down for more.
Plus, today’s partner is outlining Nvidia’s secret trillion-dollar AI pivot…
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TOGETHER WITH WEISS RATINGS
Nvidia's recent $277 billion market cap surge was just the start. They're now surfing a new AI wave, backed by tech giants, worth $1 TRILLION. Leading industry voice, Dr. Martin Weiss and his team have identified 3 key Nvidia partners that could dominate this next AI phase. Don't miss your chance.
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
DOCU (+4%) DocuSign (DOCU) Q2 Earnings and Revenues Surpass Estimates (Zacks)
AVGO (-10%) Broadcom's Stock Has Been Slipping. These Analysts Say It's Time To Buy (Barron’s)
NVDA (-4%) Nvidia’s $400 Billion Tumble This Week Makes Bitcoin Look Calm (Bloomberg)
GWRE (+13%) Guidewire Software Shares Rise on 4Q Profit, Revenue Outlookopy (Dow Jones Newswires)
PATH (-6%) UiPath Stocks is Falling After Earnings and the Company Is Boosting Its Buyback Plan (Investopedia)
OVERHEARD ON THE STREET
Axios: Johnson & Johnson must pay $1 billion after Delaware Chancery Court ruled it broke promises to investors in Auris Health, bought for $3.4B.
TechCrunch: The U.K. competition watchdog suspects Google of adtech antitrust abuses, with the company set to respond before a final decision.
CNBC: Broadcom expects $12B in AI parts and custom chips sales this year, with stock up 75% as demand for its AI infrastructure grows.
WSJ: Red Lobster's bankruptcy sale approved; chain to be acquired by Fortress Investment Group, TCW Private Credit, and Blue Torch.
AP: Seven & i Holdings, parent of 7-Eleven, rejected a $14.86 per share cash takeover bid from Canada's Alimentation Couche-Tard Inc.
TOMORROW’S TRADE IDEA, TODAY
Why Are Investors So Cold on Celsius?
Caffeine Crash
Energy drink maker Celsius Holdings (CELH) was once one of Wall Street’s favorite stocks, but that has since changed. Around four months ago, the stock’s momentum started to slow — alongside the company’s growth outlook.
This past Wednesday saw the stock plummet 12% following management’s announcement at a conference that orders from a major distributor had fallen year-over-year. Now, the stock is down roughly two-thirds from its peak in May.
However, some analysts believe investors are overreacting, and the stock still has a lot of upside.
Energetic Initiatives
Celsius is ramping up its grocery store distribution, online sales, and overseas expansion. Its low-calorie and sugar-free products are considered a healthy alternative to other energy drinks — an important consideration for American consumers increasingly striving for a healthier lifestyle.
Additionally, the company has partnered with major sports events and leagues, while collaborating with social media influencers to increase brand awareness.
Its efforts may soon pay off. Analysts are predicting 20% annual earnings growth for the next three years.
Buying Opportunity?
Despite its recent selloff, Celsius shares are still trading at a fairly high multiple of 30 times 12-month forward earnings. However, this is the lowest multiple the company has traded at since becoming profitable in 2019.
Three of five analysts polled by FactSet have given Celsius a Buy rating and an average price target of $62.69 for the next 12 months — which represents around a 94% upside.
While its burst of energy (and extreme growth) may be over, the company still has a lot of potential. Analysts don’t believe that is reflected in the current stock price, which could present a great buying opportunity.
Are you bullish or bearish on Celsius Holdings (CELH) over the next 12 months? |
TOGETHER WITH WEISS RATINGS
Nvidia's recent $277 billion market cap surge was just the start. They're now surfing a new AI wave, backed by tech giants, worth $1 TRILLION. Leading industry voice, Dr. Martin Weiss and his team have identified 3 key Nvidia partners that could dominate this next AI phase. Don't miss your chance.
ON OUR RADAR
QZ: Selena Gomez, 32, is now a self-made billionaire, with over 80% of her $1.3B fortune from her comestics brand, Rare Beauty.
Nikkei Asia: Toyota will cut its 2026 global EV production forecast to 1 million cars, 30% lower than planned, due to a global EV market slowdown.
WSJ: The EU aviation safety agency has ordered inspections of Airbus A350 planes after Cathay Pacific found engine parts needing replacement.
Axios: The U.S. is investigating if major airlines unfairly devalued frequent flier points as part of a broader probe into deceptive practices.
WSJ: Companies like UPS, Volvo, and Walmart are increasingly using virtual reality for employee training in areas from maintenance to leadership.
YESTERDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 🐂 Bullish
🟨🟨🟨🟨⬜️⬜️ 🐻 Bearish
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