Monster Beverage (MNST -0.39%) announced on July 8 that it would conduct a 2-for-1 stock split on Aug. 11, and the stock price has climbed about 5% since the split.
While stock splits can generate a lot of buzz, Monster has conducted them for several years, making them more common for the energy drink beverage maker. Outside of this 2026 split, Monster most recently conducted a 2-for-1 split in 2023, an 8-for-1 split in 2020, and a 3-for-1 split in 2016.
The recent split may have given the stock price some short-term momentum, but that could quickly fade. Here's what I'd consider before investing in or buying more Monster shares for the long term.
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What to do with Monster Beverage stock
For more conservative investors, Monster will seem a little rich, with its forward price-to-earnings (P/E) multiple of 41.6. In comparison, the energy drink maker Celsius Holdings (CELH +0.89%) has a forward P/E of 22.6. Speaking of Celsius, Monster is also in a competitive area with limited shelf space. And as an investment, the company doesn't pay a dividend, so investors are entirely reliant on Monster's stock price appreciation.
That said, one thing I like about Monster is that it continues to see sales growth from its core product line. For the second quarter of 2026, sales from its core energy drink segment climbed 21.6% to $2.36 billion, accounting for the bulk of the company's $2.54 billion in total revenue. Some may view it as a concentration risk that so much revenue is derived from one segment. I view it more as Monster is still able to increase sales of its best sellers, has pricing power, and has superb brand loyalty.
In addition, Monster also has some promising revenue growth areas. One is through international sales, where, in the second quarter of 2026, the energy drink maker reported that net sales outside the United States increased by 34.6% to $1.1 billion. That accounted for 46% of total sales for the quarter. The alcohol segment, while currently showing sluggish results, may also offer long-term revenue growth opportunities. Sales for its alcohol segment declined 15.2% in the second quarter to $32.2 million, which is a relatively small figure compared to Monster's $2.54 billion in total revenue for the quarter.
NASDAQ: MNST
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But according to InsightAce Analytic, the global alcoholic energy drink market is expected to more than double in value from $31.8 billion in 2025 to $67.9 billion by 2035. Monster can keep tinkering with its alcohol segment while it gathers more data on what works, eventually expanding that division if demand picks up.
Taking everything into consideration, investors are expecting Monster to deliver significant earnings growth, giving it a lot to live up to. But for more aggressive investors who can handle the risk, Monster, with its dominant branding in the energy drink space, accelerating revenue growth from its core products, and further expansion opportunities internationally and through its alcohol segment, is a stock I would consider adding to a long-term portfolio.
