Celsius (NASDAQ: CELH) stock saw a staggering 7,330% rise in the five years leading up to March 2024, but has since fallen 58%. With revenue growth expected to slow, investors are cautious about inventory buildup and potential irrelevance. Analysts project a 21% compound annual revenue growth rate from 2025 to 2027.

In the most recent quarter, Celsius reported a 173% year-over-year revenue increase to $725 million, driven by the acquisition of Alani Nu. However, scanner sales grew only 13%, suggesting possible inventory issues. International expansion and leveraging PepsiCo’s distribution network offer growth opportunities.

Despite its previous meteoric rise, Celsius faces challenges like slower revenue growth, inventory buildup, and potential irrelevance in a competitive market dominated by Monster Beverage and Red Bull. The lack of a sustainable competitive advantage raises concerns for investors, despite the stock trading significantly below its peak.

Investors eyeing Celsius stock should be wary of potential risks like brand relevance and competitive positioning. While the stock may have experienced a significant decline from its peak, caution is advised. The Motley Fool’s Stock Advisor team suggests looking at other stocks for potentially higher returns.

Read more at Yahoo Finance: What to Know Before Buying Celsius Stock