The Scary Future of Monster Beverage Corp (MNST)

While Monster saw first-quarter sales grow 6.5%, to $484.2 million, that’s an 85% drop from the first-quarter growth it achieved the year before. As these types of lawsuits and negative publicity campaigns mount, I believe Monster may soon run out of energy.

The death of a teenager is always tragic, but it doesn’t have to mean someone is “guilty” because of it. The lawyers who prey on the emotions of the bereaved understand that there can be easy money to be made in piling on the tragedies. Monster Beverage may have seen its shares climb nearly 50% above their recent lows, but investors would be well advised to note that there may be more scary drops in the future as these types of lawsuits and regulations become more common.

The article The Scary Future of Monster Beverage originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Molson Coors Brewing, Monster Beverage, and PepsiCo. The Motley Fool owns shares of Monster Beverage and PepsiCo.

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