Why Celsius Holdings Inc. (CELH) Surged On Friday?

We recently published a list of Five Chinese Firms Dominate Friday’s Top 10 Gainers. In this article, we are going to take a look at where Celsius Holdings Inc. (NASDAQ:CELH) stands against the other friday’s top gainers.

The stock market suffered a bloodbath on Friday, with major indices posting whopping declines, as investors sold off positions for saver havens amid concerns about a slowing economy and sticky inflation.

The Dow Jones fell by 1.69 percent, the S&P declined by 1.71 percent, while the tech-heavy Nasdaq nosedived by 2.20 percent.

Meanwhile, 10 stocks—predominantly Chinese firms—defied a broader market downturn, clocking in gains.

To come up with Friday’s best performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A hand pouring a cool can of a carbonated non-alcoholic beverage with a smiley face on it.

Celsius Holdings Inc. (NASDAQ:CELH)

Celsius Holdings jumped by 27.77 percent on Friday to finish at $32.62 apiece as investors gobbled up shares in the company following twin news of its acquisition of its competitor while earning a rating upgrade from an investment firm.

According to the company, it entered into a definitive agreement to acquire Alani Nutrition LLC for a total transaction of $1.8 billion, which includes taxes amounting to $150 million.

CELH’s acquisition was seen as a strategy to bolster growth. By combining with Alani Nu, the two brands are expected to hold a 16-percent market share in the energy drink sector.

The acquisition is expected to be completed in the second quarter of the year.

Meanwhile, CELH also earned a higher price target from TD Cowen at $30 versus $29 previously. The investment firm, however, maintained a “hold” rating on CELH’s shares.

Overall, CELH ranks 2nd on our list of friday’s top gainers. While we acknowledge the potential of CELH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as CELH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.