No sugar rush for Monster Beverage. Stock plunges.August 9, 2012: 2:13 PM ET
Energy drink maker Monster Beverage (MNST) was looking very lethargic Thursday. Shares were down nearly 9% in mid-afternoon trading, making Monster, not to be confused with job site Monster Worldwide (MWW), one of the worst performers in the S&P 500.
Monster didn't have a bad quarter or gloomy guidance per se. But this is a momentum stock. Before its big move down Thursday, shares were up 47% for the year. So Monster fell victim to high expectations. But some traders on StockTwits are concerned, especially about potential problems overseas.
And if the company's shares continue to stumble, rumors about a possible takeover may start to heat up again. Earlier this year, traders were yammering about the possibility of Coca-Cola (KO) making an offer for Monster.
It might make sense for Coke or Pepsi (PEP) for that matter to consider a bigger push in the rapidly growing energy drink market. But Monster is not an easy acquisition to digest. Even after factoring in today's drop, shares still trade at 30 times 2012 earnings forecasts.
So maybe investors should just load up on more caffeine?
Ha! Although if you look at the most recent market share data, maybe Red Bull needs a Monster?