I don't know what the future is for SodaStream, but the company previously stated expectations of hitting the $ 1 billion mark in revenue by 2016. I'm not sure that's possible. Admittedly, I'm surprised they reached the $500 million sales mark.
I've tasted the product, and it's very good. I also like the fact that the company sells syrups that are sweetened with cane sugar, which is making a comeback because it tastes better than corn syrup-sweetened drinks, and also because some consider sugar the healthier of the two sweeteners. But I can pick up a case of sugar-sweetened Mexican Coca-Cola (KO), in glass bottles, no less, or a 12 pack of Pepsi (PEP) Throwback, also made with sugar, at the grocery store. I just don't see the benefit of making it at home. Perhaps I'm just lazy. But I'm not alone.
It will still be interesting to see where the stock heads from here. Now trading at about 15 times earnings, it's gotten a lot cheaper. I've sometimes taken positions in former growth darlings which were punished beyond what seemed reasonable (eBay
(EBAY) for example), but I am not interested here.
I can't help but think that the problems during the fourth quarter may be at least partially due to waning consumer excitement about the product.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
At the time of publication, the author held no positions in any of the stocks mentioned.