shares Energy drinks company Celsius (NASDAQ: CELH) It fell as much as 16.8% this week, according to data previously provided Standard & Poor's Global Market IntelligenceIndustry data indicated a slowdown in the growth of energy drinks. Shares were down 16.7% for the week at 2:30 PM ET.
Slow down energy drinks
To be clear, there are no earnings reports yet, but investors are looking at market data from outside analysts that indicate a slowdown in energy drink growth. At an industry conference this week, CEO John Fieldley said he believed the entire energy market would decline without Celsius.
What investors are struggling with is the right price to pay for Celsius stock. After this week's decline, shares still trade at more than 10 times sales and 67 times earnings. This is an incredibly high price for a consumer stock, but Celsius has also been a growth engine that has received huge multiples.
What are you doing now
As a Celcium shareholder who thinks long-term, I view this pullback as a buying opportunity. Stocks are still up over the past year and the rally this spring wasn't driven by great results, it was just a trading phenomenon.
What I see in the business is still a growth story, although there will be fluctuations depending on distributor inventory, the speed at which stores restock shelves, and when international expansion occurs. What concerns me more are the long-term trends and a company that is still growing over 30% annually is a good bet even at a high valuation.
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Travis Huium He has positions in Celsius. The Motley Fool has positions in and recommends Celsius. The Motley Fool has Disclosure policy.
Celsius stock fell 16.8% in a terrible week Originally published by The Motley Fool