1 Soaring Stock to Hold for the Next 20 Years

Core Viewpoint - Celsius Holdings is positioned as a promising growth stock in the energy drink market, particularly with its health-conscious alternatives, despite recent market downturns and challenges in distribution [1][3]. Group 1: Market Performance - Celsius Holdings' stock has increased by 17.8% in 2025 and 46.8% since last summer's price drop [2]. - The S&P 500 index is down 7% from its all-time high in February 2025, indicating a broader market decline [1]. Group 2: Market Position and Challenges - Celsius' market share in the American energy drink sector decreased from 8.1% at the end of 2023 to 7.3% in Q4 2024 due to distribution issues with PepsiCo [4]. - Despite a 39% increase in international sales, total revenue fell by 4% year-over-year in Q4 2024 [4]. Group 3: International Growth Potential - International sales accounted for 6.1% of total revenue, up from 4.2% the previous year, indicating growth potential in foreign markets [5]. - Celsius is expanding its distribution to new regions, including the Benelux area, and has previously entered markets like France, Ireland, the U.K., Australia, and New Zealand [5][6]. Group 4: Strategic Partnerships and Acquisitions - Celsius is pursuing a patchwork of partnerships for distribution, which may include local companies where larger partners like PepsiCo and Suntory are not effective [7]. - The company is acquiring Alani Nu for $1.65 billion to tap into the growing female energy drink market, enhancing its product offerings [8]. Group 5: Long-term Outlook - The international growth story for Celsius is expected to take time, with volatility anticipated as the company develops its foreign markets [9]. - Celsius aims to match the international sales success of competitors like Monster, which had 41% of its revenue from international sales in 2024 [9].