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Energy drinks you say? Fun fact, Monster is one of only a small number of stocks that outperformed NVDA over the past 20 years: https://www.portfoliovisualizer.

Energy drinks you say? Fun fact, Monster is one of only a small number of stocks that outperformed NVDA over the past 20 years: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=v0L77PTKrmG9xdgNq61w5 https://www.portfoliovisualizer.com/backtest-portfolio?s=y&s...

deleted 3y ago
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0cf8612b2e1e 3y ago
That’s amusing. Although, Monster had explosive growth in its first few years (starting from nothing). Do it over 17 years and NVidia wins.
- boringg 3y ago
  That and construction slowing down. I see a lot of construction guys downing Monster energy drinks. TBH I'm always a little surprised -- but it does give you energy when you need it.
  - ComputerGuru 3y ago
    Aside from the caffeine boost the bigger issue is just that They burn through calories.
- eigenvalue 3y ago
  Monster is a classic "capital lite" business model with a large and growing addressable market, and management has been extremely successful reinvesting the substantial free cash flow generated by the business into organic growth and acquisitions. There are really only a handful of businesses of that calibur in the entire public market. Of course, people have realized all of this by this point, so Monster stock trades a large multiple of earnings (nearly 40x), while prospective growth will never match what they did historically from inception, otherwise they'd end up the largest company in the world after not too long!
  - joecool1029 3y ago
    I mean, look at private ones like AriZona iced tea that still sells cans for $0.99 and the owners are multi-billionaires.
    - DaveExeter 3y ago
      What do think the manufacturing cost for a can of it is? Maybe ten cents? It's a high-margin business!
      - zappb 3y ago
        It’s too bad that most business owners care more about power than profits. Otherwise, we’d see far more occurrences of successful businesses like this.
thiago_fm 3y ago
Celsius is also growing like crazy. As I said, there's more money to be made in energy drinks, I don't understand the big hype.
- lotsofpulp 3y ago
  Monster energy drinks net income is ~$1B. Intel/TSMC/etc have or have had net incomes many multiples of that. Is there that much more potential left for energy drinks? I would hope not for the sake of people’s health.
  - thiago_fm 3y ago
    Check Celsius out, it contains less sugar, more caffeine, they've been growing +100% YoY($CELH). There's more space than you could imagine.
    - lotsofpulp 3y ago
      I don’t see why a startup would be indicative of potential profits in this space, especially a miniscule business where it is expected to grow 100% YoY. Coca Cola and Pepsi each seem to have profits in the $5B to $10B range, which can be a proxy for how much profit there exists in the space because everyone else is much smaller. Maybe if these energy drinks displace all of coffee and tea, but I would be surprised. How much more caffeine will (or should) consume?
  - fakedang 3y ago
    > Is there that much more potential left for energy drinks? President Camacho has yet to come to power to authorize energy drinks for irrigation (because it's got electrolytes), so I'd say yes, there's still a ton of potential.
    - otikik 3y ago
      And then the become the central part of the economy.
- 3y ago

deleted 3y ago

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0cf8612b2e1e 3y ago

That’s amusing. Although, Monster had explosive growth in its first few years (starting from nothing). Do it over 17 years and NVidia wins.

boringg 3y ago
That and construction slowing down. I see a lot of construction guys downing Monster energy drinks. TBH I'm always a little surprised -- but it does give you energy when you need it.
- ComputerGuru 3y ago
  Aside from the caffeine boost the bigger issue is just that They burn through calories.
eigenvalue 3y ago
Monster is a classic "capital lite" business model with a large and growing addressable market, and management has been extremely successful reinvesting the substantial free cash flow generated by the business into organic growth and acquisitions. There are really only a handful of businesses of that calibur in the entire public market. Of course, people have realized all of this by this point, so Monster stock trades a large multiple of earnings (nearly 40x), while prospective growth will never match what they did historically from inception, otherwise they'd end up the largest company in the world after not too long!
- joecool1029 3y ago
  I mean, look at private ones like AriZona iced tea that still sells cans for $0.99 and the owners are multi-billionaires.
  - DaveExeter 3y ago
    What do think the manufacturing cost for a can of it is? Maybe ten cents? It's a high-margin business!
    - zappb 3y ago
      It’s too bad that most business owners care more about power than profits. Otherwise, we’d see far more occurrences of successful businesses like this.

thiago_fm 3y ago

Celsius is also growing like crazy. As I said, there's more money to be made in energy drinks, I don't understand the big hype.

lotsofpulp 3y ago
Monster energy drinks net income is ~$1B. Intel/TSMC/etc have or have had net incomes many multiples of that. Is there that much more potential left for energy drinks? I would hope not for the sake of people’s health.
- thiago_fm 3y ago
  Check Celsius out, it contains less sugar, more caffeine, they've been growing +100% YoY($CELH). There's more space than you could imagine.
  - lotsofpulp 3y ago
    I don’t see why a startup would be indicative of potential profits in this space, especially a miniscule business where it is expected to grow 100% YoY. Coca Cola and Pepsi each seem to have profits in the $5B to $10B range, which can be a proxy for how much profit there exists in the space because everyone else is much smaller. Maybe if these energy drinks displace all of coffee and tea, but I would be surprised. How much more caffeine will (or should) consume?
- fakedang 3y ago
  > Is there that much more potential left for energy drinks? President Camacho has yet to come to power to authorize energy drinks for irrigation (because it's got electrolytes), so I'd say yes, there's still a ton of potential.
  - otikik 3y ago
    And then the become the central part of the economy.
3y ago