Watch Netflix, Coca-Cola, and Pepsi
Ahead of posting its second-quarter results, Netflix (NFLX) closed at $1,274.17. In post-market trade, markets did not react to the strong results and increase in the company’s fiscal year revenue guidance.
Netflix earned $7.19 a share after revenue grew by 15.9% Y/Y to $11.08 billion. For 2025, revenue will be up to $45.2 billion, above the $43.5 billion to $44.5 billion previously forecast. Key commentaries include an operating margin increase for the year. It will benefit from the depreciation of the U.S. dollar. Also, the business has ongoing business momentum.
Coke (KO) made headlines on Thursday. Its fructose supplier, Archer-Daniels-Midland (ADM), will lose Coke’s business after the drink supplier uses real cane sugar. Unfortunately, American farmers will lose jobs from the switch.
ADM will also close a pet food plant in Brazil to streamline costs and operations.
Pepsi (PEP) soared on Thursday, gaining 7.45%. It posted non-GAAP EPS of $2.12. Despite revenue growing by 1.0% Y/Y to $22.73 billion, the total return to shareholders attracted buyers. Pepsi returned $8.6 billion to investors through $7.6 billion in dividends and $1.0 billion in stock buybacks.
Pepsi demonstrated that a turnaround is in progress. GLP-1 drugs are not a threat to Pepsi’s soda and chip sales. GLP-1 drug suppliers, however, are performing poorly. Eli Lilly (LLY) is down by 1.36% YTD. Novo Nordisk (NVO) lost 24.10% YTD and fell by 53.82% in the last year.
