Should You be Worried After SodaStream Earnings -- or Greedy?

Updated

SodaStream stock had a very ugly Wednesday after the company reported earnings that missed Wall Street's expectations for revenue. The miss and subsequent sell-off leaves investors with a perplexing question: Do these results point to trouble ahead for SodaStream, or is this a perfect opportunity to invest after a pullback?


Image courtesy of SodaStream.

A primary concern for investors in SodaStream is whether the product, at-home soda, is simply a fad in America. After five years on the American market, SodaStream has continually proved skeptics wrong, with revenue growing from $4.9 million in 2008 to $157.7 million in 2012. While these results are truly extraordinary, the Wall Street machine cares little for the past, and the new earnings have again cast doubt over the company's future.


This doubt stems from a few areas, most notably shrinking sales in Japan and slowing growth in the America's segment alongside flavoring sales. While these are causes for concern, investors should also focus on the positive trends affecting the company's future. In the video below, Motley Fool analyst Blake Bos goes over the recent results and lets investors know whether he thinks they should be worried or greedy for more shares after the earnings miss.

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The article Should You be Worried After SodaStream Earnings -- or Greedy? originally appeared on Fool.com.

Blake Bos owns shares of SodaStream. The Motley Fool recommends SodaStream. The Motley Fool owns shares of SodaStream. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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