Is Celsius a Buy After Tumbling 18% in 1 Day?

Celsius Holdings (CELH) plunged 18% after reporting Q2 revenue of $817.9 million—up 11% year-over-year but short of expectations—and adjusted EPS of $0.36, down 23% from the prior year. The flagship Celsius brand delivered the sharper pain point: sales fell 12% year-over-year, marking a notable deceleration for the energy drink maker.

The stock now trades 75% below its March 2024 peak and carries a forward P/E of 18.8, a sharp compression from prior multiples. Despite the valuation reset, competition remains intense. Red Bull and Monster Beverage continue to dominate shelf space, while Costco's Kirkland private-label energy drink adds pressure on the value end.

The earnings miss and negative brand-sales growth raise durability questions. Celsius rode explosive growth through 2023, but the 12% brand decline suggests distribution gains may be plateauing and consumer loyalty remains untested against incumbents and budget alternatives.