Dive Summary:
- Since the controversy surrounding Monster energy drinks unfurled earlier this month, share prices of the company have gone down considerably for fear of FDA action against the comapny.
- In a letter released on Tuesday but sent earlier in the month, the FDA says it will be looking into the claims, however does not expect to make any sweeping regulatory changes any time soon.
- This news bolstered the stocks performance as investors rallied. The stock jumped 14% to finish at $52.47.
From the article:
Shares of Monster Beverage Corp. soared as concerns eased about increased regulation for the energy drink maker following a letter, made public Tuesday, from the U.S. Food and Drug Administration.THE SPARK: The letter, sent earlier this month, said that the FDA was studying energy drinks to see if they posed a risk when consumed by "vulnerable groups" such as young people, or in excess â but it did not indicate that any immediate action would be taken against the drinks makers. The letter also said there is no scientific literature that calls into question the safety of taurine a...
