What Makes Celsius Holdings (CELH) a Troubled Stock?

NewBridge Asset Management, an investment management company, recently released its Q4 2025 letter for “NewBridge Large Cap Growth Equity Strategy”. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in the fourth quarter, driven by resilient economic growth and solid corporate returns. In the fourth quarter, large-cap growth outperformed, while in the third quarter, small-cap and value equities exceeded the growth strategy. The NewBridge Large Cap Growth Strategy generated a positive return in the quarter, but lagged behind the benchmark, the Russell 1000® Growth Index. Most portfolio companies exceeded quarterly expectations, but a few faced declines. The biggest challenge was the contrasting returns between Uber Technologies, Inc., held in significant amounts, and Tesla, Inc., which was not owned by the portfolio. The market environment was generally favorable for the portfolio in the fourth quarter. The firm remains confident in its industry-leading companies, which are poised to deliver attractive financial results despite potential market volatility. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, NewBridge Large Cap Growth Equity Strategy highlighted stocks like Celsius Holdings, Inc. Celsius Holdings, Inc. (NASDAQ:CELH). Celsius Holdings, Inc. (NASDAQ:CELH) develops, markets, and distributes functional drinks and liquid supplements. Celsius Holdings, Inc. (NASDAQ:CELH) shares traded between $21.10 and $66.74 over the past 52 weeks. On January 26, 2026, Celsius Holdings, Inc. (NASDAQ:CELH) stock closed at $54.54 per share. One-month return of Celsius Holdings, Inc. (NASDAQ:CELH) was 18.21%, and its shares lost 11.89% of their value over the last three months. Celsius Holdings, Inc. (NASDAQ:CELH) has a market capitalization of $14.06 billion.

NewBridge Large Cap Growth Equity Strategy stated the following regarding Celsius Holdings, Inc. (NASDAQ:CELH) in its fourth quarter 2025 investor letter:

"Celsius Holdings, Inc. (NASDAQ:CELH) – CELH has been a troubled stock since June. The energy drink industry’s sales growth has slowed down from levels earlier this year. In addition, brands have become more promotional in an effort to spur waning demand, especially within the convenience store channel. While still growing faster than the category, CELH has experienced a steep year-over year growth slowdown as well. Adding fuel to the fire, estimates for CELH’s sales and earnings have also come down due to PepsiCo’s (its largest North American distributor) inventory optimization initiatives. Unfortunately, it has become difficult for CELH management and the analyst community to estimate how much product PepsiCo will take in each quarter. While the stock has significantly underperformed over the last few months and its valuation has fallen, it is difficult to decipher near-term catalysts that could improve investor sentiment. Therefore, we decided to exit the portfolio’s small position in CELH."

Celsius Holdings, Inc. (NASDAQ:CELH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 58 hedge fund portfolios held Celsius Holdings, Inc. (NASDAQ:CELH) at the end of the third quarter, up from 52 in the previous quarter. For Q3 2025, Celsius Holdings, Inc. (NASDAQ:CELH) reported revenue totaling $725 million, up 173% compared with the same period last year. While we acknowledge the potential of Celsius Holdings, Inc. (NASDAQ:CELH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Celsius Holdings, Inc. (NASDAQ:CELH) and shared the list of stocks Jim Cramer talked about. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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