Coca-Cola Increases Investment in Keurig Maker Green Mountain

Mike Santoli breaks down the news from the soda maker and it what it means.
3:59 | 05/13/14

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Transcript for Coca-Cola Increases Investment in Keurig Maker Green Mountain
I'm Michelle president New York as the markets. -- Tuesday may thirteenth this is -- story. Today a look at current green mountain makers of those ubiquitous single cup coffee makers throwing up some strong stock gains this afternoon. To break it all down I'm joined now by -- and toll of Yahoo! finance Mike went -- -- a boost today. Well we got news today that Coca-Cola has increased its investment banker -- -- now. Go to call had already had a 10% position. In the stock and raised at the -- 16% so it basically means that Coca is even more committed seems. -- finding some way -- partner with courage. To get sort of counter top. -- -- -- to be a reality. Well let's a look at the two day charred and walk us through what a good day -- having. Yeah I was up by actually close -- 10% earlier I didn't raise saga more than 7%. Last I looked in. Green mountain has been actually a very hot and very controversial stock a lot of people think it's been overvalued for a long time but they've shown such great growth. With their current product and basically. Really about performed on the sales side there last quarter was a good one they had more than a billion dollars in sales and actually was driven. By sales of new coffee -- -- the actual machine units which means it down the road they're gonna have that many more sales of the little individual packets the one drawback coffee prices raw coffee prices have been surging this -- that is. Pressuring the bottom line a little bit but overall invested been happy with it. And -- like let's talk a little bit about what's driving Coke's push -- coffee it's not just all about the coffee being right. Now it really isn't about coffee so -- the idea here seems to be that there be some technology using these current machines to make single serve. Sodas -- some kind of a carbonated beverage unit that they can actually I have that as a growth outlet for Coke itself the thing with Coca-Cola is an all the other. Big carbonated soft drink makers is that soda sales have been declining jobs are basically they stagnated for a few years and now -- the US they've been declining people are concerned about -- and even Diet Coke. Has had to struggle. With declining sales so they're looking for ways to capitalize on the fact that now people are used to the idea. I've kind of brewing -- making their own beverages at home and and that is what what I think has people excited about the opportunity. For -- mountain here to have a huge influential part real. Coca-Cola and it looks like there's a little bouncer boost here -- strong earnings certainly didn't hurt -- interest either reporting a 22% rise in profits a couple of days ago. Yeah if they did and he said that the profits definitely sort of put the naysayers back on their heels and they said a lot of people have been skeptical -- -- -- can keep up. They're growth record so far it looks okay they're also I should -- has been have been some criticisms about green -- accounts for some of its sales to big retailers but that so far. Has not come back to bite it and and the earnings report was definitely another reason for some excitement. In the stock even before the -- news today and not everyone's happy with this a -- in Minnesota strain that do it yourself home of soda makers what happened. -- but it just being here so people are kind of extrapolating from that the Coke -- news to say maybe this will cut into the market share. -- stream of the attractiveness of having one of those units out there. There's been some talk that maybe Starbucks and -- -- PepsiCo might look to partner with -- stream to also actually have bad as as a distribution outlet. For single serve drinks but -- not come to pass and now sort of stream is suffering a little bit on the back -- because they obviously are. Sort of a pioneer in allowing people to make carbonated drinks at home at the moment. Thanks for getting us up to date on all the buzz like -- toll from Yahoo! finance things. -- -- keep up with the latest headlines right here on Even watching stories stock I'm Michelle Franzen in New York.

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

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