Shares of energy drink company Monster Beverage (NASDAQ:MNST)
fell 5.2% in the pre-market session after the company reported disappointing first quarter 2025 results: while gross margin beat expectations, revenue missed significantly. Revenue dropped over 2%, weighed down by fewer orders from distributors, currency hits overseas, and a sharp fall in alcohol-related sales.
Management did point to stronger sales in April and solid retail numbers for energy drinks overall, which could mean things are turning around.
Overall, this quarter could have been better.
Wall Street traded slightly lower by midday Friday, as investors adopted a wait-and-see stance ahead of a potential trade breakthrough, with high-stakes negotiations between U.S. officials—led by Treasury Secretary Scott Bessent—and Chinese authorities set to unfold over the weekend.
Monster Beverage Corp. (NASDAQ: MNST) is bracing for tighter margins in the second quarter as rising aluminum costs and tariff-related premiums begin to squeeze its bottom line.
Energy drink company Monster Beverage (NASDAQ:MNST) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 2.3% year on year to $1.85 billion. Its non-GAAP profit of $0.47 per share was 2.2% above analysts’ consensus estimates.
U.S. stocks traded mixed at midday Wednesday, as investors remained cautious ahead of the Federal Reserve’s upcoming policy decision, with Chair Jerome Powell set to speak at 2:30 p.m. ET.
Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match.
The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
The FDA and HHS are launching a national push to eliminate petroleum-based food dyes, starting with Citrus Red No. 2 and Orange B. The plan is part of Robert F. Kennedy Jr.'s "Make America Healthy Again" campaign to improve public health and food safety.
Let’s dig into the relative performance of Anheuser-Busch (NYSE:BUD) and its peers as we unravel the now-completed Q4 beverages, alcohol, and tobacco earnings season.
Even during a down period for the markets, Monster has gone against the grain, climbing to $58.33. Its shares have yielded a 13.7% return over the last six months, beating the S&P 500 by 23.6%. This run-up might have investors contemplating their next move.
Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence.
With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
Spruce Point Capital Management has announced a short position against Monster Beverage Corp (NASDAQ:MNST) as the short seller sees 25% to 40% downside risk.
