SodaStream Is More Bronco Than Seahawk

SodaStream hits another 52-week low today.

Feb 3, 2014 at 4:15PM

This isn't the way that SodaStream (NASDAQ:SODA) probably drew it up in the playbook, but the soda industry disruptor is hitting fresh 52-week lows the day after its Super Bowl ad aired.

Let's be fair: SodaStream isn't at a new low because of the ad. The stock has been moving lower since the company followed up a poorly received third quarter with a dreadful fourth-quarter showing. However, it probably didn't help that SodaStream gambled by having its ad featured during the fourth quarter of last night's game. This would have been prime real estate if it had been a competitive game, but the blowout likely had a lot of people ducking out of their Super Bowl parties early to gear up for the workweek.

Some will argue that it doesn't matter. SodaStream had already milked more value out of its spot than most advertisers by having its ad initially banned. Unlike the prior year's commercial that had to be replaced entirely, all that SodaStream had to do yesterday was scrape away Scarlett Johansson saying, "Sorry, Coke and Pepsi" to make this year's spot good to go.

The notoriety of having a spot banned worked. SodaStream uploaded the uncensored clip to YouTube a week ago, and this morning the video surpassed 10 million views.  

So where does SodaStream go after the unfortunate timing of its Super Bowl ad? 

This has not been a good start to the year for SodaStream. The shares surrendered 26% of their value last month, fueled by the warning that the company would barely break even during the holiday quarter. To put it in Super Bowl terms, SodaStream's been playing more like the Broncos than the Seahawks last night. It's been missing snaps, misreading coverages, and generally getting shredded.

The year doesn't have to end the way it started for SodaStream. Analysts still see healthy growth in 2014 and beyond, but it's hard to take Wall Street's optimism seriously until it overcomes the factors that squeezed margins to the point of nearly squeezing all of the profitability out of the holiday quarter. 

A good early catalyst will be if the Johansson spot improves SodaStream's standing. It didn't feature any celebrities in earlier spots, and the sheer volume of star power seen during last night's commercials shows that marketers believe consumers respond to famous endorsers. 

SodaStream's at a new 52-week low, but if the pop star does to its fundamentals what its namesake beverage system does to tap water, it won't be long before things get fizzy again.


Source: SodaStream.

6 more stocks that are making the right growth moves
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Rick Munarriz owns shares of SodaStream. The Motley Fool recommends and owns shares of SodaStream. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information