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.
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.
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.
"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.
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.
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.
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.
It's been a good week to be in the soda business.
While the debate over whether Pepsi or Coke taste better will probably go on forever, there's no denying the beverage companies have fairly healthy balance sheets.
PepsiCo and Coca-Cola both reported better-than-expected earnings this week, proving to investors that consumers still like their soda (or pop if you're from the Midwest) and snacks.
Shares of PepsiCo (PEP) rallied 5% to a new MORECatherine Tymkiw - Apr 18, 2013 1:15 PM ET
Investors are turning their noses up at beverage stocks, as the Health Department approved a ban on selling giant sugary drinks in New York City on Thursday and two senators questioned the safety of energy drinks for children.
Monster Beverage (MNST) which makes non-carbonated energy drinks, as well as iced teas, lemonades and juice cocktails, has seen its stock fall nearly 10% over the past five days. Recently, takeover MORECatherine Tymkiw - Sep 13, 2012 11:58 AM ET
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