SodaStream Shares Are Going Bonkers

SodaStream shares were up as much as 10% in pre-market trading to $39.48.

In the first few minutes of trading they pared some of those gains going to $37.59. And are up about 5.6%.

The stock was down as much as 13% after hours on Wednesday, after Coca-Cola announced that it is taking a 10% stake in Green Mountain Coffee Roasters.

Here's the line in the press release that had investors freaking out:

"With The Coca-Cola Company as a global strategic partner in our multi-brand at-home Keurig Cold beverage system, we believe there is significant opportunity to premiumize and accelerate growth in the cold beverage category by empowering consumers with an innovative, convenient way to freshly prepare their favorite cold beverages at the push of a button," said Brian P. Kelley CEO of GMCR.

Following the news, Keybanc downgraded SodaStream to 'hold', from 'buy', reports Andrew Meola at TheStreet.com.

There is some chatter that the rally in share price today could be driven by short-covering.

Here's a look at what the stock is doing: