SodaStream Shares Bubble And Burst Following PepsiCo And Tilson Comments

Shares of SodaStream (NASDAQ: SODA) bubbled and burst on Thursday surrounding PepsiCo comments, Whitney Tilson's stance and profit taking by investors.

PepsiCo CEO Open-Minded On In-home Soda Devices

Early Thursday morning, PepsiCo's (NYSE: PEP) CEO Indra Nooyi commented that she is keeping her options opens when it comes to in-home soda stream devices in an interview with Bloomberg TV.

"Our goal is to play with all manufacturers,” said Nooyi, who continued that will aid the company for "when this category becomes a factor in the marketplace with consumers, we're actually playing with all of the machinery manufacturers."

PepsiCo currently has a deal with the Maltese company Bevyz, which unveiled an at-home beverage machine. PepsiCo aims to offer consumers a capsule to give consumers the ability to make the drink at home.

Coca-Cola (NYSE: KO) has previously made a deal with Keurig Green Mountain (NASDAQ: GMCR). SodaStream has been rumored to potentially team with Starbucks (NASDAQ: SBUX).

Following Nooyi's comments, shares of SodaStream jumped to $43.04, up 1.2 percent from Wednesday's close of $42.53. The stock continued its momentum before starting to decline around 11:49 a.m. EST.

Whitney Tilson Hunts SodaStream Bears

Shares dipped as low as $42.22 before Bloomberg's report that managing partner Whitney Tilson at Kase Capital Management commented that the bears are wrong. The stock spiked once again, climbing as high as $43.08.

Tilson commented that "the shots are wrong" and shares are "cheap" following a 15 percent plunge in the Bloomberg note. The managing partner said SodaStream International offers a "compelling value" for consumers and has "very loyal customers."

In an email to Benzinga, Whitney Tilson confirmed his long position in SodaStream.

Markit data shows that as of April 30, 24 percent of SodaStream's shares outstanding were being held as short interest.

Investors Sell Out On News

Shares of SodaStream began a steep decline with investors profit taking from the comments, hitting Thursday's low of $41.80. The stock fell over three percent from the Tilson high, before landing at the low, down 1.75 percent from Wednesday's close.

SodaStream will report first quarter earnings on May 14.