Alani Nu Surpasses Celsius Brand Sales in Q3, Stock Remains Unattractive on Fundamentals

What happened

The Motley Fool article reports that Alani Nu generated more sales in Q3 than the Celsius brand, continuing a trend from the first half where the two brands were nearly equal. CELH stock has fallen 50% from its highs, prompting the article's buy thesis based on Alani's success and apparent valuation. However, the DeepValue master report shows core Celsius brand revenue fell 11.7% in Q2 2026 and gross margin declined to 48.1%, with no evidence of recovery in the latest filing. The article's positive framing of Alani as a 'steal' overlooks that Alani's strength is masking weakness in the flagship brand, and the stock remains expensive with a P/E of 131 and EV/EBITDA of 35. Insider selling by former 10% owners adds a further cautionary signal.

Implication

The master report's WAIT rating and $24 attractive entry remain appropriate, as Alani Nu's outperformance does not repair the core Celsius brand decline. The next two quarterly filings must show positive Celsius-brand revenue growth and gross margin above 49% to justify a more constructive stance. Until then, the market may continue to reward the Alani story, but fundamental risk remains skewed to the downside given high valuation multiples. Investors should monitor Celsius-brand tracked growth, inventory and receivable levels, and any further insider selling. Any rally based on the Motley Fool article's bullishness may provide a better exit opportunity for existing holders rather than an entry point for new buyers.

Thesis delta

The Q3 data showing Alani Nu outselling the Celsius brand reinforces the bear case from the master report: acquisition-led growth is masking a declining flagship. The article's claim that the stock is attractively valued is not supported by the fundamental analysis, which shows a P/E of 131 and EV/EBITDA of 35, leaving no margin of safety. No change to the WAIT rating; the evidence strengthens the argument to wait for a lower price or clear confirmation of Celsius brand recovery.