Wild Ride for Monster Beverage’s Stock

Apr 30, 2012
J. Webster
Comments Off on Wild Ride for Monster Beverage’s Stock

If you owned shares of Monster Beverage (MNST) today, hopefully you sold those shares on the Wall Street Journal rumor that Coca-Cola (KO) was going to buy the company. The stock shot up to as high as $85 a share but then shot back down to $65 a share towards the end of the day after Coke said they weren’t going to buy the energy drink company.

It seems the stock shot up too high and too fast and Coke ended the so called “talks”. Some folks on Twitter are saying influential Coke shareholders might have had something to do with this, perhaps one named Warren Buffett, who owns a large chunk of Coke shares, didn’t want the company to pay such a high price for Monster Beverage. I know Buffett loves his Diet Cokes, just don’t seem him downing a Monster drink in the morning.

It’s a perfect example of the crazy world of the stock market. Who was the WSJ source who said Coke was in talks? They’re sources are called: “unidentified people familiar with the situation”. What does that mean exactly? And then who first learned that Coke was in fact not interested…?

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