CELH Stock Alert: What to Know as Rockstar Energy Founder Takes Aim at Celsius

Russ Savage, the billionaire founder of energy drink brand Rockstar Energy, has fired some shots at the management of popular energy drink brand Celsius Holdings (CELH). Actually, Savage has been building up his stake in Celsius. After the company’s disappointing Q2 results, leading to an 18.5% intraday drop in CELH’s stock, it was revealed that Savage has built a stake of more than 12 million shares of Celsius. This subsequently led to a 16.8% gain in the stock on Aug. 7. 

In the Q2 earnings call, Celsius CEO John Fieldly cited a deliberate cut of items with low ACVs and a planned pause in innovation surrounding its core brand. Fieldly cited this as a rationalization to integrate the Alani Nu brand, which it acquired in 2025, and the Rockstar brand, whose U.S. and Canadian operations were bought from Pepsi (PEP). This is the same brand that Savage founded in 2001 and sold to Pepsi in 2020. 

Fieldly also acknowledged that while Celsius cut underperforming SKUs immediately, upgrading shelf space takes time, which is why some upgrades were shifted to later reset windows. At the same time, as the company held back on product launches to simplify distribution during this transition period, there was no innovation to bridge the sales gap. However, he pointed toward the company’s brand popularity and energy drinks’ strong position in the beverage category. 

Savage’s investment comes with a sharp critique of the way in which Celsius is now being handled. He has not been impressed by the company sacrificing shelf space so that it goes to big names like Red Bull or Monster (MNST). He publicly volunteered to take the role of CEO of Celsius and called for the firing of “The CEO, the COO, the brand manager and the marketing manager.” 

About Celsius Stock

Boca Raton, Florida-based beverage company Celsius develops, markets, and distributes functional energy and fitness drinks under the Celsius brand, positioning it as zero-sugar, better-for-you alternatives to traditional energy drinks. The company’s portfolio includes ready-to-drink cans, carbonated “Fizz-Free” formats, and on-the-go powders and hydration sticks. 

Celsius operates globally, with distribution partnerships, notably with PepsiCo, supporting wide retail availability through supermarkets, convenience and drug stores, mass merchants, health clubs, and e-commerce channels. Celsius commands approximately one in five energy drinks purchased in the U.S., or roughly a 20% dollar share in tracked channels. It has a market capitalization of $7.1 billion. 

CELH’s stock has been under pressure due to the slowdown in its flagship brand. The company’s self-inflicted overcorrection in its product line optimization strategy has also likely pressured its stock’s growth. Over the past 52 weeks, the stock has dropped 49.13%, while it is down 42.23% year-to-date (YTD). It reached a 52-week low of $23.56 on Aug. 6, but is up 13.4% from that level. 

On a forward-adjusted basis, Celsius’ stock is trading at a price-to-earnings ratio of 23.41 times, which is higher than the 17.18x industry average. 

Celsius’ Sales Rise, But Profits Remain Pressured

For the second quarter, Celsius’ revenue increased 11% year-over-year (YOY) to $817.90 million, which missed Wall Street analysts’ expectation of $872 million. The focus during the quarter was the integration of the Rockstar brand, which generated approximately $66.50 million in revenue in Q2. However, Alani Nu emerged as the bright spot, generating sales of approximately $364.40 million as the company shifted to a PepsiCo distribution system and launched a limited-time cotton candy. 

However, the pressure came from its core CELSIUS brand, where sales dropped by about 12% YOY as the company focused on SKU optimization and enacted a planned moderation in innovation activity. A core brand slowdown pressured margins during the quarter. CELH’s gross margin declined by 340 basis points to 48.1%. Its adjusted EPS decreased by 23% YOY to $0.36, missing the $0.42 consensus estimate. 

Wall Street analysts expect near-term pressure on its bottom line. For the current quarter, Celsius’ EPS is expected to decline by 11.9% YOY to $0.37. However, for the current year, EPS is projected to increase by 12.7% YOY to $1.51, followed by another 22.5% improvement to $1.85 in the next year. 

What Do Analysts Think About Celsius’ Stock?

After Celsius Holdings’ quarterly results, many Wall Street analysts cut their price targets on the stock, as the results were underwhelming. Citi analysts lowered the price target from $50 to $40, but kept their “Buy” rating. After the “soft” second-quarter report, analysts at the firm see a challenging near-term upside. JPMorgan maintained an “Overweight” rating but lowered the price target from $56 to $52. 

The biggest pivot came from analysts at the Bernstein SocGen Group, who downgraded Celsius from “Outperform” to “Market Perform” and lowered the price target from $44 to $26. Analysts cited concerns about the beverage company’s brand momentum and category growth. Bernstein sees Celsius’ growth trajectory slowing, with only modest scope for margin improvement as cost-saving scale benefits arrive later than expected and persistent inflation weighs on profitability.

Wall Street is taking notice of Celsius’ stock, with analysts awarding it a consensus “Strong Buy” rating overall. Of the 22 analysts rating the stock, a majority of 17 analysts have given it a “Strong Buy” rating, one analyst suggested “Moderate Buy,” while four analysts are taking the middle-of-the-road approach with a “Hold” rating. The consensus price target of $48.55 represents an 81.2% upside from current levels, while the Street-high price target of $85 indicates a 217.2% upside.