Shares of energy drink company Celsius (NASDAQ: CELH) surprisingly jumped on Wednesday after the company announced when it would release quarterly financial results and announced that it would participate in an investor conference. That would ordinarily be trivial news. But for Celsius, this is all happening this week. That's unusual and has investors speculating that the company has good news to share. And that's why Celsius stock was up by 14% as of 10:40 a.m. ET.
After the market closed yesterday, Celsius issued a press release. It announced that it's going to report financial results for the fourth quarter of 2024 tomorrow after the market closes. And then on Friday morning, management will make a presentation at the Consumer Analyst Group of New York Conference. Usually these things would be announced a month or more in advance, not days.
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In some investors' minds, this can only mean one thing: Celsius must have good news to share with investors and it wants to get the financial report out there so that it can discuss it at the conference. This is quite the about-face with expectations. So far in 2025, short interest in Celsius stock -- investors betting it will lose value -- has been quickly jumping toward an all-time high.
In light of yesterday's surprise announcement, it seems some short-sellers are reassessing their conviction when it comes to betting against Celsius stock.
This theory from investors regarding Celsius stock certainly sounds plausible. But I need to emphasize that it's all speculation. It's also possible that the company will report numbers merely inline with expectations. Or just as plausible, maybe management knows that it's going to underperform and it wants to reassure investors at the upcoming conference that it's still on the right track.
I personally believe Celsius stock is undervalued and has a bright future. But I wouldn't recommend buying the stock just because of the unusual timing of publishing its financial results. I hope the numbers will be good. But it's not a guaranteed outcome simply because the company is releasing them quickly.
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Jon Quast has positions in Celsius. The Motley Fool has positions in and recommends Celsius. The Motley Fool has a disclosure policy.