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SodaStream fizzles as buyout rumors fade

June 6, 2013: 11:25 AM ET

SodaStream has a loyal following but talks of a takeover may be overblown.

SodaStream lost some of its fizz Thursday after PepsiCo debunked rumors that it might buy the soda maker.

Earlier this week, shares of SodaStream (SODA ) rallied on chatter that Coca-Cola might be interested.

If either panned out, it would be somewhat ironic. Earlier this year, SodaStream's Super Bowl ad, which touted its reusable bottle in a diss to Pepsi (PEP) and Coke (KO), never aired.

JPMorgan analyst John Faucher said it was more likely that SodaStream would strike up a partnership rather than be bought outright.

For anyone who thought SodaStream was just a fad, consider this.

The company has been around, in one form or another, since 1991. It went public in 2010 and has garnered a loyal following along the way.

Related: SodaStream's bubbly rise

It's also been a darling of short sellers for much of this year, though those betting on a stock decline, have started having second thoughts. That may be another reason the stock has gotten a decent boost.

Whatever the reason, SodaStream was drawing a lot of attention from StockTwits traders.

joshing
$SODA "PepsiCo shoots down report of SodaStream talks" http://stks.co/hYlG

"The report is completely and totally untrue," a PepsiCo spokesman reiterated to me.

And as JPMorgan's Faucher points out, "We don't see much in the way of distribution leveraging" to justify a deal.

A Coca-Cola spokesman declined to comment, saying the company doesn't comment on market rumors or speculation.

ronin245
$SODA see the pump then the dump, they run it up to get shrs off, totally legal but kind of shady

Interesting point. During premarket trading, the stock surged to $100 before backing off. But if you look at the short interest, it looks like those in the "betting on a decline" camp have been paring back all month.

Of course, short interest of 6.98 million shares is nothing to sneeze at. But that's down from the 8.2 million in January.

Mathematics
$SODA they'll be bought and you'll never see the product ever again lol

Everyone's a critic (#humor). I think I'm more in Faucher's camp. With a partnership, you'd get the best of both worlds.

momomiester
$SODA up which shows you this market is about momentum and technicals. There is no logic. The demand for "fresh" soda is unprecedented.:)

Is that irony? "fresh" soda. Anyone I've spoken with who owns a SodaStream machine is fiercely loyal to it. I think there might even be a soda lovers club out there somewhere, that's how much people who own those machines love them.

bradloncar
You kind of get the impression that if $PEP or $KO bought $SODA, they might kill the product.

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Catherine Tymkiw
Catherine Tymkiw
News Editor CNNMoney

Catherine Tymkiw is a news editor at CNNMoney where she helps oversee breaking news coverage and futures planning. Previously, she was the investing editor. Prior to joining CNNMoney, she was the online editor at Crain's New York Business and has nearly two decades of reporting and editing experience. She tweets @ctymkiwcnn

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