CELH Stock Falls As Texas AG Probes High-Caffeine Drinks Targeted At Teens

• Paxton referred to the death of a teenager due to the alleged consumption of Alani Nu energy drinks in a statement. 
• Celsius’s Alani Nu brand is positioned as a low-calorie energy drink popular among young adults.
• Retail traders see the pullback in shares as a “great buying opportunity.”

Shares of Celsius Holdings (CELH) fell 7% on Thursday after Texas Attorney General Ken Paxton announced an investigation into the company over concerns that its high-caffeine energy drinks are being marketed to children and teens.

Attorney General Ken Paxton said his office is investigating Celsius Holdings Inc. and its subsidiary Alani Nutrition for potentially misleading consumers about the safety of Alani Nu energy drinks, which contain 200 milligrams of caffeine per 12-ounce can.

Celsius’s Alani Nu brand is positioned as a low-calorie energy drink popular among young adults.

Probe Rationale

“Texas families deserve to know that the products marketed to their children are safe and not filled with dangerous levels of certain ingredients,” Paxton said in a statement.

The investigation will examine whether Celsius and Alani violated the Texas Deceptive Trade Practices Act by misrepresenting the safety of the products for teens and children. It comes after the family of a 17-year-old from Weslaco, Texas, filed a lawsuit against the distributor of Alani Nu, claiming the teen died from an enlarged heart linked to excessive caffeine consumption and that the product lacked adequate warnings.

Paxton said that the death of the teenager is a “sobering reminder of what is at stake when companies prioritize profit over the safety and wellbeing of our children.”

Celsius completed the acquisition of Alani Nutrition in April 2025. The all-cash-and-stock deal included $1.275 billion in cash, approximately $500 million in newly issued Celsius shares, and up to $25 million in a performance-based earn-out.

How Did CELH Retail Traders React?

On Stocktwits, retail sentiment around CELH fell from ‘Neutral’ to ‘Bearish’ territory over the past week, while message volume remained at ‘low’ levels.

A Stocktwits user termed the pullback in shares as a “great buying opportunity.”

Another user, however, expressed pessimism about the stock, citing “incompetent management.”

A third user said that the current price is an “incredible entry point” for new buyers.

According to data from Koyfin, 19 of the 22 analysts covering CELH rate it ‘Buy’ or higher, while three rate it ‘Hold’. The 12-month average price target on the stock is $61.40, representing a potential upside of about 105% from the last close.

CELH stock is down 41% this year owing to slowing growth in the firm’s core Celsius brand in the first quarter and high valuation after a big run-up in 2025. 

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