Celsius (CELH) Extends Losses as Funds Flock to AI

We recently published 10 Stocks Lost This Big While Wall Street Celebrates. Celsius Holdings, Inc. (NASDAQ:CELH) is one of the worst performers on Monday.

Shares of Celsius Holdings dropped for a third consecutive day on Monday, shedding 6.19 percent to close at $51.34 apiece as investor funds fled to artificial intelligence stocks amid new developments in the booming sector.

Additionally, Celsius Holdings, Inc. (NASDAQ:CELH) lacked fresh catalysts to bolster investing appetite during the session.

Despite the decline, Celsius Holdings, Inc. (NASDAQ:CELH) currently holds positive ratings from investment companies, with Zacks Research currently at a “strong buy” recommendation for its stock.

According to Zacks, it expects the company to post year-on-year growth in 2025 and 2026 earnings by 54.3 percent and 28.6 percent, respectively, as early signs suggest that its series of product launches is doing well.

Performance data from Zacks in the second quarter showed that flavor innovation is beginning to translate into repeat activity for the company.

“Variety packs and fresh flavors helped Celsius secure the number one spot among ready-to-drink (RTD) energy brands on Amazon during Prime Day, reaching an 18.4% one-week share. This kind of momentum reflects not just initial trial but strong consumer pull, with retailers reordering top sellers and featuring them during promotional periods,” Zacks said.

“Flavor innovation is not only widening [Celsius Holdings, Inc. (NASDAQ:CELH)] brand reach but also reinforcing habits, giving consumers more reasons to return to the brand rather than just try it once,” it noted.

While we acknowledge the potential of CELH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.