January 18, 2013
Fools Isaac Pino and Jeremy Bowman discuss three areas investors need to monitor regarding Monster Beverage.
First, future growth. In the past, Monster has grown at 30% a year, and now its growth rate is closer to 14%. The company is maturing and the market may be a little saturated. Can even a 14% growth rate be sustained?
Second, health and safety concerns. The Food and Drug Administration is investigating a girl's death associated with Monster Energy drinks. While there may be no direct link between her death and the energy drink, this incident opens the company to more regulation as well as negative press. How Monster responds to inquiries is important to its corporate image.
Third, future product launches. Monster was a bit of a niche player in the carbonated drink business and its first product was a definite home run. Can Monster continue hitting home runs as it starts competing more directly with larger, more established companies like Starbucks?
The stakes are high for Monster Beverage these days. The stock had been nothing short of a rocket, but recent developments have sent shares spiraling downward. Health scares sparked a number of investigations at the state and federal level into the energy drink's role in several fatalities. With the company's value slashed in half, investors are wondering whether Monster Beverage is a value or a bust in the fast-growing energy drink category. Find out now in our brand-new premium research report, which details all the ins and outs you need to know about Monster Beverage, and even comes with a full year of updates to boot. Click here now to claim your copy and start reading today.