Monster Beverage Continues to Plunge on FDA Probe
Monster Beverage (NASDAQ: MNST) plunged again on Tuesday after Goldman Sachs (NYSE: GS) removed the stock from its Conviction Buy list, while the firm kept its "Buy" rating on shares. The FDA confirmed this week that it is investigating reports of people dying after drinking the company's Monster Energy Drink.
The 24-ounce drink has up to seven times the amount of caffeine as a 12-ounce cola. Last week, a wrongful death suit was filed against the company by the parents of a 14-year-old girl who died after drinking two of the energy drinks over a 24-hour period.
Monster has said that it is "unaware of any fatality anywhere that has been caused by its drinks." Goldman Sachs analyst Judy Hong said that the potential regulatory and legal overhang stemming from the deaths could continue to weigh on the stock in the near-term, but that they are unlikely to affect Monster's sales growth.
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