Shares of beverage company Zevia jumped 5.7% in the afternoon session after the release of stronger-than-expected U.S. retail sales data, which pointed to resilient consumer spending and lifted consumer-focused stocks. The broader market rallied after a Commerce Department report showed U.S. retail sales rose a better-than-expected 0.6% in June, signaling robust consumer health despite inflation and tariff concerns. For a consumer-focused company like Zevia, which sells zero-calorie sodas and energy drinks, signs of a strong consumer are particularly encouraging as it suggests shoppers have more capacity for discretionary purchases.\n\nAlso, the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.\n\nAfter the initial pop the shares cooled down to $3.13, up 4.9% from previous close.\n\nZevia’s shares are extremely volatile and have had 77 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.\n\nThe previous big move we wrote about was 23 days ago when the stock gained 8.6% on the news that the major indices rebounded (Nasdaq +1.4%, S&P 500 +1.0%) on hopes the reported ceasefire between Israel and Iran will hold. This de-escalation in a volatile region helped to ease concerns about potential disruptions to global oil supplies, leading to a notable dip in crude oil prices. Additionally, dovish signals from Federal Reserve Chair Jerome Powell in his Congressional testimony, reaffirming a \"wait-and-see\" approach on interest rates, further calmed markets, improving investors' appetite for stocks and other risk assets.\n\nZevia is down 31.8% since the beginning of the year, and at $3.13 per share, it is trading 35.2% below its 52-week high of $4.83 from January 2025. Investors who bought $1,000 worth of Zevia’s shares at the IPO in July 2021 would now be looking at an investment worth $229.30.

Zevia (ZVIA) Stock Trades Up, Here Is Why

Zevia's shares surged 5.7% after stronger-than-expected U.S. retail sales data and strong second-quarter earnings reports, though the stock later cooled to $3.13. The rally was driven by resilient consumer spending and optimism from 88% of S&P 500 components exceeding earnings expectations. The stock remains volatile, with a 31.8% year-to-date decline, though recent market factors like the Israel-Iran ceasefire and Fed Chair Jerome Powell's dovish signals contributed to the rally.