Monster Beverage Corporation, through its subsidiaries, develops, markets, sells, and distributes energy drink beverages and concentrates in the United States and internationally.
Monster Beverage Corporation was initially Hansen's Natural Sodas founded by Hubert Hansen and his sons1930’s. But in 2012, the company change the name from Hansen's Natural to Monster Beverage Corporation. Monster sells Sky, Peace Tea, Hansen’s Natural, but most know for its Monster Energy drink.
When one thinks of Monster cool, edgy, risky might come to mind, but an investment in the company may never cross your mind.
$1,000 worth of Apple shares on January 9, 2007, which was when the iPhone was introduced to the world would be worth over $25,000 today.
$1,000 worth of Amazon during its IPO in 1997 would be worth more than $1.5 million today.
$1,000 in Netflix going back to 2007 would be worth over $90,000 today.
$1,000 investment in Microsoft on the day of its IPO in 1986 would be worth more than $1.5 million today.
But a $1,000 invested in Monster in 2005 would be worth over $3 million. That’s right, since the beginning of this century, Monster has returning an almost 60,000% thanks to its commanding 30% market share in the energy drink market.
NOTE: Energy Drinks are like soda in that they contain caffeine, but unlike soda, energy drinks also can contain taurine, amino acids, herbal extracts, and vitamin B with the purpose of boost, you guest it, energy levels and mental stimulation.
In 2014, Coca-Cola acquired a 16.7% stake in Monster Beverage for $2.15 billion giving Monster Beverage access to Coke’s distribution centers and worldwide bottling system. These newly acquired resources will increase Monster Beverage’s global presence.
Now Monster has its eyes on the seltzer market.
Monster Beverage has rallied in 2020, and the next set of gains could come from the introduction of a hard cider, Stifel suggests.
Analyst Mark Astrachan reiterated a Buy rating and $77 price target on Monster (ticker: MNST) on Monday, writing that he thinks the company is considering introducing an alcoholic drink, most likely a seltzer. “We also think the company could launch a nonalcoholic sparkling water under the Monster brand while the alcoholic version will be a new brand, like [fitness beverage] Reign.”
Astrachan writes that Monster is “likely to launch a value-added hard seltzer that adds key product attributes ultimately expanding category usage occasions similar to how it has utilized innovation in energy drinks. We think Monster is likely to seek distribution via a large beer network, with a product rollout in 2021.”
I'm not guaranteeing another 60,000% return over the next 15 yr. Quite honestly, based on the laws of number, I think that will be nearly impossible. However, with the stock price trading at all-time highs, the chart suggests to buy on a pull back to the weekly demand at $55.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
