Cramer Ditches Celsius for Coca-Cola Amid Struggling Core Brand

Jim Cramer has lost faith in Celsius Holdings (CELH) and prefers Coca-Cola (KO), citing disappointing earnings and a struggling core brand.

Celsius posted second-quarter revenue of $817.9 million, up 10.6% from last year, but below the expected $886 million. Adjusted earnings came in at $0.36 a share, short of the $0.43 Wall Street predicted.

The bigger concern was sales of Celsius' flagship line, which fell 11.7% from a year earlier. Profit margins also slipped due to promotions and shifting sales channels.

Coca-Cola, on the other hand, posted strong quarterly results with adjusted earnings of $0.97 per share, ahead of expectations. The company has raised its dividend for over six decades and offers a steady, profitable profile that investors tend to favor during market uncertainty.