Celsius Holdings stock rose 14.8% this week

Shares of Celsius Holdings, known for its energy drinks, rose this week although there was no specific news about the company. The increase in stock price was linked to PepsiCo's announcement of a $1.95 billion acquisition of Poppi, a prebiotic soda maker. This acquisition indicates that large beverage companies are willing to invest, boosting investor confidence in Celsius as well. The stock gained 14.8% by Thursday afternoon. On Monday, Celsius stock jumped over 10% after the PepsiCo deal was revealed. However, some analysts are cautious. Jefferies noted that PepsiCo's move into healthier beverages could signal a reduced focus on Celsius, which has seen its stock drop more than 70% from its peak due to slowing sales and excess inventory. Despite the skepticism, Celsius shares rose again on Wednesday after Federal Reserve Chairman Jerome Powell commented positively on the economy. His remarks were seen as encouraging for consumer brands like Celsius. Celsius recently announced its own acquisition of Alani Nu, a nutritional supplement company, for $1.8 billion. The company is navigating challenges, facing competition from brands like Red Bull and Monster Beverage as the energy drink market matures. Currently, Celsius's stock is considered more reasonably valued, trading at a forward price-to-earnings ratio of around 30. If growth slows down is only temporary, there may be potential for the stock to rise significantly.