Story Stock: Investors Thirsty for SODASTREAM

Word spreads that the beverage machine maker might sell large stake in the company.
4:04 | 04/16/14

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Transcript for Story Stock: Investors Thirsty for SODASTREAM
I'm Michelle Franzen in New York -- the financial markets. On Wednesday April 16 has the story stuck and one stock with the story today is so history. Make your own pop machine that promises more than -- hundred flavors could sell up to 16% of its stake to break it all down. I'm joined now by Rick Newman from Yahoo! finance. First of all Rick who's buying up so the -- Well it's important point out this is a rumor and -- other rumors of big companies' -- -- do yourself soda company before but there were the latest rumor for what it's worth. Could be Pepsi could be. Doctor pepper snapple are could be Starbucks. And I think that they -- the reasoning here is that Coca-Cola just made an investment. In the company makes us carry home coffee machines. They're getting at this they're getting into cold beverages you can make it -- so the thinking hit it here is that. This is the next. Big your place in a market that beverage companies want to be in making here. I'm making beverages at home so that and other big beverage company might want to buy -- street and out again this is a rumor and you know -- sends stocks up news sends them down some time so not sure the. -- -- home and a lot of shifting going around of course in the beverage industry let's check out the two day chart though for this quite a big spike. For the soda stream the new -- -- putting the valuation -- around the billion dollars these sales reflect that. Sales -- reflect that. Has -- -- stream has just had. It increasingly good sales quarter after quarter clearly it has caught on. You know another thing it's going on here Michelle is. People are drinking less soda for obvious reasons I mean it's not good for us. We keep hearing about you gotta get sugar out here diet -- and some some nutritionists tell you sugar is. One of the worst and you can put new your body Ross are scratching our heads -- that what's it going to be next. But in the meanwhile big beverage companies need to find. New ways to keep their own sales up so so this Minnesota stream you can make this without sugar. Sultry make it home and this is something that one way or another probably all the big beverage companies are going to be -- -- And certainly we've seen that diet sales have gone down. According to Coca-Cola today. What about soda stream is -- good as you mentioned for competition and who would be by in the -- that this -- -- true. But -- -- by ended up just to sort of buy it out clean award to compete. -- -- -- Doesn't seem like -- means go back to what -- did Coke only about a 10% share in. Green mountain coffee dressers that's a company to make secured machine. So they -- -- have a stake in that business but they don't necessarily feel they need to dominated and again this rumor is that these companies would not. Necessarily buy the whole company but they were just don't assess bacon -- -- so again they have a stake in it that's one of the way the things companies did you spread your bats around invest in. A few things that you think might bring you some growth in the future in which -- hope that some of those -- pay off. You know wasn't that long ago Minnesota street -- controversial headlines over its production plant in. Palestinian territories and Scarlett Johansson endorsement. How did that affect the company. It you know it didn't really affect the company its an Israeli company. That manufactures and some some Palestinian settlements. That was a big controversy for about a week. The stock price has been going up and down but had been going up and down before that I think what happens it gets used on. Takeover rumors very similar -- we've seen today. And the takeover rumors don't materialize the stock comes down a little bit sales -- just kept going strong though there was. No noticeable dent in sales. And I think that was honestly I think that was an issue that. For the most part sailed right over the heads of most American consumers anyway. Well make your own so it make hero coffee it seems people want to make their own things again Rick Newman of Yahoo! finance thanks for joining Napster thing. Even watching stories -- stay with abcnews.com. For your latest headlines I'm Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

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