GET DAILY SIGNALSWhy Is Monster Beverage (MNST) Stock Down -3.62% Today?
Key Takeaways
- MNST shares fell 3.62% on the session, sliding to $46.10 from a prior close of $47.83.
- The decline was driven by third-quarter results that revealed weaker-than-expected profitability despite a strong top-line beat.
- Gross margin narrowed to 54.7% from 55.7% a year earlier, pressured by higher aluminum-can and freight costs and a less favorable geographic sales mix.
- The move was company-specific: the S&P 500 and Nasdaq advanced while MNST fell, diverging from a broadly steady beverage sector.
- Traders are watching margin recovery, the impact of a U.S. price increase, and whether international growth continues to outpace the core U.S. market.
- For more details on Price Targets, Earnings, and Forecast, explore Tickeron's dedicated pages.
- To see how AI-powered strategies are navigating this environment, explore Trending AI Robots.
Opening Summary
Monster Beverage Corporation (MNST), the Corona, California-based energy drink maker behind the Monster Energy, Reign, and Bang brands, saw its stock fall 3.62% on Friday. The shares closed at $46.10, down from the previous session's close of $47.83. The retreat was directly tied to the company's third-quarter 2026 earnings report, released after Thursday's close. While revenue beat expectations, a contraction in gross margin and operating margin overshadowed the sales strength, prompting investors to reset near-term profitability assumptions for a stock that had rallied toward its 52-week high.
Earnings Results: Strong Sales, Weaker Margins
The primary catalyst was Monster's third-quarter report. Net sales rose 16.7% year over year to $2.56 billion, topping the roughly $2.48 billion consensus estimate. Adjusted earnings per share came in at $0.30, exactly in line with analyst expectations. Despite the revenue beat, the market focused on profitability. Gross margin slipped to 54.7% from 55.7% a year earlier and came in below the consensus estimate of about 55.4%. Operating margin compressed to 28.0% from 30.7% in the prior-year period, meaning net income growth of 8.4% lagged far behind the pace of revenue growth.
Cost Pressures and Geographic Mix
Management attributed the margin squeeze to higher aluminum-can and freight costs, along with a shifting geographic sales mix. International sales grew 28.1% and now represent roughly 47% of total revenue, up from about 43% a year earlier. While that expansion is strategically valuable, international markets carry structurally lower price points and margins than the domestic U.S. business, diluting overall profitability. Executives also signaled that aluminum costs are expected to rise at least through the first quarter of 2027, extending the cost headwind. A U.S. price increase that took effect in early November may provide some offset, but its full impact has yet to be reflected in results.
Analyst Reaction
Analyst responses were mixed, underscoring the tension between robust demand and thinner margins. Jefferies raised its price target to $55 and maintained a Buy rating, citing favorable international growth. Wells Fargo lifted its target to $52 with an Overweight rating, pointing to the sales beat and upcoming pricing actions. UBS, however, held a Neutral stance with a $50 target, flagging softer-than-expected U.S. market-share trends. The divergence in analyst views contributed to a choppy market reaction, with the earnings-driven margin concern ultimately winning out in Friday's trading.
Market Context and Trading Activity
The decline was a company-specific event rather than a reflection of broader weakness. The S&P 500 and Nasdaq both advanced on the day, and beverage peers held broadly steady, isolating MNST's underperformance as an earnings-driven move. Trading volume was elevated, tracking well above the stock's typical daily average as investors repositioned following the report. The shares, which had been trading near their 52-week high of $50.17 before earnings, gave back a meaningful portion of their recent gains as the margin miss prompted a re-rating of near-term earnings expectations.
What Comes Next for MNST
Looking ahead, investors will be watching several factors. The effectiveness of the November U.S. price increase in offsetting aluminum and freight cost inflation will be a key test of margin recovery. The trajectory of international growth, particularly in Latin America, will remain in focus given its outsized contribution to revenue but lower margin profile. Management has signaled a robust innovation pipeline for 2027, including new products across the Monster, Reign, and FLRT lines. Risks include persistent input-cost inflation, a competitive U.S. energy drink market, and the potential for further margin compression if cost pressures outpace pricing actions.
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MNST in upward trend: 10-day moving average moved above 50-day moving average on October 21, 2026
The 10-day moving average for MNST crossed bullishly above the 50-day moving average on October 21, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 76%.
Technical Analysis (Indicators)
Bullish Trend Analysis
MNST moved above its 50-day moving average on October 02, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +3.60% 3-day Advance, the price is estimated to grow further. Considering data from situations where MNST advanced for three days, in 207 of 344 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
The Aroon Indicator entered an Uptrend today. In 177 of 312 cases where MNST Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 57%.
Bearish Trend Analysis
The 10-day RSI Indicator for MNST moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In 26 of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at 63%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 34 of 73 cases where MNST's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 47%.
The Momentum Indicator moved below the 0 level on November 06, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MNST as a result. In 46 of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 49%.
The Moving Average Convergence Divergence Histogram (MACD) for MNST turned negative on November 06, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 23 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 46%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MNST declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 47%.
MNST broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 1 (best 1 - 100 worst), indicating outstanding price growth. MNST’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 37 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 38 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 48 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock slightly better than average.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 91 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.565) is normal, around the industry mean (-3.202). P/E Ratio (42.138) is within average values for comparable stocks, (26.797). Projected Growth (PEG Ratio) (2.153) is also within normal values, averaging (3.732). Dividend Yield (0.000) settles around the average of (0.038) among similar stocks. MNST's P/S Ratio (9.542) is very high in comparison to the industry average of (2.785).
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General Information
a holding company with interests in markets and distributes energy drinks
Industry BeveragesNonAlcoholic
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