Why is it that both companies post earnings that beat market expectations, but Pepsico stock goes down and Coca Cola jumps 6% as of 12:15PM CST? Could it be that the market knows which is the better run company with the more positive business outlook? People see what is going on at Pepsico and realize what a sh**show it really is.
5 replies (most recent on top)
It is because of the lead in the Cheetos and lack of affordable innovation.
Pepsico is only a follower , Coca Cola has been outsourcing already 10 years ago , they are already now in the process to bring back some tasks.
In general : there is a market principle : buy the rumour but sell the news ...
Coke is outsourcing too. Seems like we always follow their business model.
PepsiCo announces earnings that beat expectations and the stock goes down about $4 per share. Coke announces the same snd the stock goes UP $3 per share. The investors know the better run company for the long trrm.
While no fan of internal PEP management with regards to its employees and business processes, the company on the whole is a very simple business with predictable revenues. Ideal stock holding for say institutional investors looking for lowish volatility stocks to hold. PEP shares are trading near the upper end of their 52 week range and if there are good earnings releases and the price of PEP shares go down, it is more often a reflection of traders having already priced in the good ER and simply exiting positions to take profits. So I would not read too much into the stock price on this front.
That aside, I do agree with you entirely that it's a serious sh** show there...!