Jim Cramer holds back support for surging beverage stock
Jim Cramer, on CNBC's Mad Money, expressed preference for Coca-Cola (KO) over Celsius Holdings (CELH), citing KO's steady performance and dividend. CELH's stock has risen 16% in a month due to activist investor interest, but Cramer's stance follows weak Q2 earnings. KO reported strong Q2 results with 7% revenue growth and beat earnings estimates. CELH's core brand sales declined 11.7%, and margins fell to 48.1%. Analysts have lowered CELH's price targets post-earnings.
How this was made
The 30-second read
Why it matters
The commentary may reinforce existing price trends but does not introduce new material corporate events.
Market read
Retail sentiment may tilt toward stable dividend stocks, while high‑growth niche brands face heightened scrutiny.
What to watch
Activist investor pressure and integration costs of recent acquisitions could drive longer‑term volatility.
Background
Jim Cramer’s on‑air endorsement shift from Celsius to Coca-Cola follows Celsius’s Q2 earnings miss and an activist push for leadership change.
Ticker impact
Cramer endorsed Coca-Cola as the safer beverage pick after its earnings beat, highlighting its dividend and steady growth.
Small upside bias in the near term.
Cramer's endorsement can drive short‑term buying, but no new corporate event is disclosed.
Celsius reported a weak Q2 with revenue below expectations and a decline in core‑brand sales, prompting Cramer to withdraw his support.
Potential downside pressure in the short term.
Earnings miss is already public, but the added commentary may reinforce a sell bias.
Market effects
Highlights a shift in retail focus toward dividend‑paying beverage giants versus high‑growth niche brands.
U.S. consumer‑discretionary sector may see modest reallocation.
Limited to U.S. equity investors tracking Cramer’s influence.
Counterpoint
Celsius’s growth premium may still appeal to risk‑seeking traders despite the earnings miss.
Key entities
- personJim Cramer
Host of CNBC’s Mad Money, influential among retail investors.
- companyCelsius Holdings
Energy‑drink maker reporting a Q2 earnings miss.
- companyCoca‑Cola
Dividend‑paying beverage giant with a recent earnings beat.
