Celsius and Remitly: Stocks to Watch in 2025

Celsius and Remitly are positioned for growth in 2025. Despite challenges from inventory issues and market share competition, positive future projections could benefit investors.

Date: 26-01-2025

AI Rating: 6

Overview
Recent developments surrounding Celsius Holdings and Remitly Global suggest a dual narrative for investors eyeing 2025. While both companies face hurdles, their growth potential remains robust, particularly in an evolving market landscape.

Celsius Holdings
Celsius has encountered a significant downturn, experiencing a 31% decline in year-over-year revenue in the third quarter of 2024, along with a steep 75% drop from its all-time high share price. This decline primarily stems from a temporary inventory issue caused by over-ordering from PepsiCo, which initially boosted revenue growth. However, as demand recovers and the inventory situation stabilizes, there is potential for Celsius to return to positive revenue growth. The current market cap of Celsius stands at $6 billion, with trailing revenue of $1.37 billion over the past year. Analysts believe that Celsius could reach about $2 billion in revenue in the coming years through international expansion and market share growth.

Remitly Global
Conversely, Remitly is on an upward trajectory, boasting a 39% increase in revenue year over year, with revenue reaching $336.5 million last quarter. The company demonstrated strong performance metrics, with a 42% growth in send volume and a 35% increase in active customers. Despite the company still being only at a 3% market share in remittances, its modernized approach compared to traditional competitors like Western Union signals robust growth potential moving forward.

Conclusion
Both Celsius and Remitly present varying risk-reward profiles for prospective investors in 2025. While Celsius navigates inventory issues, Remitly enhances its market footprint. Despite current challenges, the inherent value and growth opportunity in both stocks warrant close watching.

Stocks: CELH RELY