What Happened?
Shares of energy drink company Celsius (NASDAQ: CELH) jumped 2.1% in the morning session after Goldman Sachs initiated coverage on the stock with a 'Buy' rating and a $72 price target.
The investment bank believes the Boca Raton-based company is one of the best growth stories in the consumer packaged goods sector. This bullish outlook is supported by the company's strong performance and strategic positioning. In its second quarter of 2025, Celsius reported an 84% year-over-year revenue increase and saw its U.S. market share surge. Adding to the growth narrative is a fortified partnership with PepsiCo, which will handle the distribution of Celsius products across the United States and Canada, putting the energy drink maker on a faster growth track.
After the initial pop the shares cooled down to $57.93, up 3% from previous close.
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What Is The Market Telling Us
Celsius’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock dropped 2.6% on the news that the latest jobs report showed nonfarm payrolls rose by only 22,000, significantly below the forecasted 75,000.
This figure, coupled with an unemployment rate that climbed to 4.3%—its highest level since December 2021—paints a picture of a cooling U.S. economy. The disappointing data suggests that employers are growing more cautious about hiring amidst an uncertain economic environment, which has been influenced by factors such as persistent inflation and trade tariffs. While the weak report increases the likelihood that the Federal Reserve will cut interest rates to stimulate the economy, it also fuels broader concerns about economic health and consumer confidence, leading to market volatility as investors digest the implications of a potential slowdown.
Celsius is up 113% since the beginning of the year, and at $57.93 per share, it is trading close to its 52-week high of $62.88 from August 2025. Investors who bought $1,000 worth of Celsius’s shares 5 years ago would now be looking at an investment worth $8,429.
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