Your portfolios in brief
Celsius Holdings, Inc. specializes in the production of health-focused energy drinks. These drinks, enriched with vitamins, minerals and caffeine, are even said to help boost metabolism and fat loss. The growing trend towards health and wellness works in Celsius' favor.
Highlights in 2023 :
- In August, the company reported an impressive increase in second-quarter sales, up 112% year-on-year to $326 million.
- The company's distribution partnership with PepsiCo has proved extremely beneficial, contributing to significant growth in revenues and profits.
- Celsius is now the third biggest energy drink in terms of quarterly sales, behind Red Bull and Monster Beverage. On Amazon, it has overtaken Red Bull to take second place.
- The energy drinks market is expected to grow by 8.4% over the rest of the decade. The US market is expected to account for around 25% of this growth. Celsius currently holds an 8.6% market share in the United States.
Why is Celsius a stock to watch?
- Since September 2018, Celsius shares have climbed a staggering 4,520%. A performance that has far outstripped the NASDAQ's 72% growth.
- The company has seen remarkable growth, with sales up 108% in 2022 and 112% in the second quarter of 2023.
- The partnership with PepsiCo has the potential to stimulate significant growth in international markets. Currently, around 95% of Celsius' total revenues come from North America.
- If the company is proud of anything, it's being the only functional and energy drink brand whose products are backed by studies (6 highlighted in its annual report) demonstrating their health-boosting properties. With its MetaPlus formula, a can of Celsius has been shown to help burn between 100 and 140 extra calories per workout, as it increases metabolism by an average of 12% over 3 hours. Improvements could also be seen in cardiovascular health, fat loss and muscle gain.
Conclusion:
Given this growth and opportunity, Celsius is definitely a stock to watch. The combination of its unique market positioning, strategic partnerships and rapid growth make Celsius a wise choice for any investment portfolio, including that of our Pratte North American Equity Fund.
Markets in brief
Monday
-Technical rebound
The New York Stock Exchange started the week on the right foot. The Dow closed up 0.13%, the NASDAQ was up 0.45% and the broader S&P 500 index was up 0.40%. These gains came despite a notable absence of major corporate news or economic indicators. The session had begun in negative territory, influenced by rising bond yields. The yield on 10-year US government bonds reached 4.54%, a level not seen for almost 16 years. Despite these challenges, indices rebounded, supported by technical thresholds and a wave of buying that followed.
-Stockss in brief :
Netflix (+1.31%): Netflix benefited from the agreement in principle between the Hollywood writers' union and the studios, putting an end to a strike that lasted almost five months.
Paramount Global (+0.16%): Like Netflix, Paramount Global benefited from the end of the Hollywood strike, anticipating a resumption of content production.
Warner Bros Discovery (-3.96%): Warner Bros Discovery ended the session significantly lower, perhaps reflecting company-specific concerns or market reactions to specific news.
-Threat of a government shutdown:
The threat of a government shutdown continued to weigh on markets, with growing concerns about the potential implications for the US economy. Investors are concerned about the potential impact on economic growth, government spending and consumer and business confidence. Budget negotiations and political disagreements are at the heart of this threat, and the situation remains fluid.
Tuesday
-Another down session
The New York Stock Exchange closed sharply lower on Tuesday, driven by risk aversion. Several factors contributed to this downward trend, including mounting concerns about the global economy, from high bond yields to oil prices. The Dow Jones fell 1.14%, the NASDAQ index dropped 1.57% and the broader S&P 500 index lost 1.47%.
Stock market indices fell to their lowest level since early June following a report showing that consumer confidence in the world's largest economy stagnated this month. It fell to 103 from a revised 108.7 in August, missing the median estimate of 105.5 according to a Bloomberg survey of economists. Wall Street's fear index, the Cboe Volatility Index or VIX, rose, closing at its highest level since May.
One of investors' main concerns is the possibility that the US Federal Reserve may go too far in its monetary tightening, which could cause major disruption to markets and the economy. This concern has been reinforced by the rapid rise in bond yields. The yield on 10-year US government bonds climbed to 4.56%, a level not seen for almost 16 years. In addition, the 30-year yield reached 4.69%, a peak not seen for over 11 years.
-Stockss in brief :
Amazon (-4.03%): The online retail giant is in the spotlight following a legal action for abuse of dominant position.
Apple (-2.34%): The Apple brand was not spared by the widespread sell-off on the market.
Microsoft (-1.70%): The company suffered losses, in line with the downward trend in the technology sector.
Alphabet (-2.06%): Google's parent company also recorded a decline.
Stellantis (-2.08%): The automaker was affected by the ongoing UAW union strike.
Ford (-1.19%) and General Motors (-2.42%): The two automotive giants also felt the effects of the UAW strike.
-Fall of the tech titans: Tech giants face monetary turmoil
The year 2023 began with a boom for technology stocks. These stocks, which were the mainstays of the first-half stock market rally, benefited from investor confidence in the strength of the American consumer and enthusiasm surrounding artificial intelligence.
However, this support wavered throughout the month. The reason? A Federal Reserve determined to keep rates above 5% and flagging consumer confidence. These factors triggered a massive sell-off that pushed tech stocks into a correction. The S&P 500 fell by 1.5% on Tuesday, reaching its lowest level since June 7. Tech giants such as Apple Inc, Microsoft Corp, Amazon.com Inc and Alphabet Inc (parent company of Google) weighed on US stock indices.
The threat of tight monetary policy calls into question some of the market's biggest gains this year in high-growth technology stocks. These companies, valued for their long-term prospects, are less attractive when future earnings are discounted at higher rates.
Wednesday
-Wall Street: A mixed close
The New York Stock Exchange ended on a mixed note, with the Dow Jones losing 0.20%, the NASDAQ gaining 0.22%, and the broader S&P 500 index edging closer to equilibrium with a slight rise of 0.02%. This performance was influenced by a continued rise in bond yields, with the yield on 10-year US government bonds reaching 4.64%, a level not seen since October 2007.
-Stockss in brief :
ExxonMobil (+3.26%): Rising oil prices benefited oil stocks, with ExxonMobil posting a solid performance.
ConocoPhillips (+2.97%): Like ExxonMobil, ConocoPhillips benefited from rising oil prices.
AMD (+2.20%): AMD CEO Lisa Su made positive statements about the potential of artificial intelligence for the chip industry.
Cloudflare (+6.81%): The announcement of a partnership with Nvidia has propelled Cloudflare, enabling it to deploy new capabilities to manage artificial intelligence at its customers' sites.
Costco (+1.91%): The Costco retail chain had a good session on Wednesday following the release of better-than-expected quarterly sales and earnings figures. However, wage inflation remains a major concern for the retailer, which could impact profit margins in the future.
-Soaring oil prices: WTI hits record highs
WTI and Brent crude oil prices recently climbed to their highest levels in over a year. This rise was mainly due to a contraction in US crude inventories, bringing Brent closer to the $100 mark. The U.S. Energy Information Agency (EIA) report revealed a significant decrease of 2.2 million in commercial crude inventories in the week ending September 22. This decrease exceeded analysts' forecasts, despite certain indicators that might have suggested an increase in reserves. The market mainly reacted to the general drop in inventories, anticipating a possible rise in prices in the future.
Thursday
-Wall Street up despite uncertainties
US stock markets showed signs of recovery on Thursday, with the Dow up 0.35%, the NASDAQ up 0.83% and the S&P 500 up 0.59%. Technology companies were among the market leaders, with Nvidia up +1.46%, Meta +2.09% and Alphabet +1.27%. However, despite this surge, operators remain cautious about the future.
This positive performance comes after a week of tensions, notably due to the rise in US 10-year interest rates, which reached record highs. However, these rates finally fell back to 4.56%.
-Oil prices on the decline
After a recent surge, oil prices retreated, with the US barrel of West Texas Intermediate (WTI) losing over 2%. The dollar, after dominating most of the world's major currencies, also paused.
-Stockss in brief
Micron (-4.41%): Loss forecasts for the current quarter worried investors, despite good results in the previous quarter.
GameStop (-1.81%): Despite the appointment of a new CEO, the company saw no significant rise in its share price.
Accenture (-4.33%): The company was punished for its lower-than-expected quarterly sales.
Peloton (+5.37%): The announcement of a partnership with Lululemon Athletica propelled the company's shares, while Lululemon saw a slight decline of -0.04%.
-Evergrande: The fall of a real estate giant and the fate of its founder
Evergrande, once one of China's largest property developers, is currently in the spotlight due to its mounting financial problems and the situation of its billionaire founder, Hui Ka Yan. Its shares were suspended on Thursday following reports that Hui Ka Yan, the group's founder and chairman, had been placed under police surveillance.
Hui Ka Yan, once an influential figure in China's power circles, saw his fortune and reputation plummet as Evergrande's financial problems worsened. Despite the company's attempts to reassure investors and the public, confidence in Evergrande continued to erode.
Its problems began when the company was unable to repay its debts, leading to a series of late payments. This set off a chain reaction, affecting not only investors, but also homeowners and suppliers.
The company's current situation reflects the challenges facing many property developers in China. While Evergrande's future remains uncertain, the repercussions of its financial crisis are already being felt in the Chinese and global economies. Experts are keeping a close eye on the situation, as bankruptcy could have disastrous consequences for global financial markets. Evergrande shares fell 19% at the close of trading on Wednesday, taking losses this week to 42%.
Friday
-Markets rebound despite a difficult month: Moderate inflation and Nike boost investor confidence
Stock markets rose on Friday morning, boosted by the latest inflation data, allowing investors to recoup some of their losses in a difficult end-of-month and end-of-quarter period. The economic indicator that the Federal Reserve uses as an inflation gauge rose less than expected in August, demonstrating that the central bank's fight against rising prices is making progress. This was the smallest monthly increase since November 2020.
The Dow opened the day up 200 points, while the S&P 500 gained 0.7% and the NASDAQ 1%. Despite a recent winning session, markets have suffered heavy losses this month and quarter. The S&P 500 is expected to close the month down 4.6% and the quarter down 3.4%. The NASDAQ fell by almost 6% in September and 4.3% over the quarter, making this the worst month of 2023 for both indices. The Dow is expected to post a decline of 3% this month and 2.2% for the quarter.
