An Investor's Take on SodaStream Earnings: Building a Future

In this video, Blake Bos gives his two cents' worth on SodaStream  (NASDAQ: SODA  ) as a long-term investment. While the most recent earnings report beat estimates, the stock suffered a sell-off. For the long term, SodaStream is doing some good things. It is building out a manufacturing plant in Israel that should help reduce its dependence on subcontractors that are adversely hurting its earnings. Similarly, SodaStream is building out its distribution network to capitalize on sales of consumables. Lastly, later this summer, SodaStream should roll out a new product with a lower price tag than the current model. Look for a price of around $99 versus $150 for what's on the shelves now. There seems to be demand for SodaStream products, and this new lower-priced product should help drive sales in the last half of the year. All told, the convergence of building out manufacturing and distribution capabilities and, hopefully, growing sales of its lower-priced products should  position SodaStream well for 2015-2016.

SodaStream's carbonation technology sounds simple, but this razor-and-blade company offers an intriguing opportunity for growth that could very well disrupt the soda industry. The Motley Fool's premium report on SodaStream explains the opportunities as well as the risks in the company. The report comes with a year's worth of updates, so just click here to get started.

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  • Report this Comment On May 11, 2013, at 1:55 PM, heliskiier wrote:

    The squeeze is on. SODA goes lockstep with GMCR. One little partnership acquisition and we're going to 80 in a gap. Still so much short float. They've been covering like crazy the past 2 trading days, but there's a long way to go to get out of all the short trades.

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9/30/2016 4:00 PM
SODA $26.56 Up +0.22 +0.84%
SodaStream CAPS Rating: **