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PEPSICO IN FREEFALL: ARE WE WATCHING A GIANT CRUMBLE?

Shockwaves Across the Beverage World! PepsiCo, Inc. (NASDAQ: PEP) is set to unveil its second-quarter results amid a storm of troubling signs! The beloved soft drink titan is grappling with serious setbacks, from escalating geopolitical tensions to crippling new tariffs that threaten to sink their profitability!

Brace Yourself for the Numbers! On Thursday, July 17, at 5:00 AM ET, the world will hold its breath as PepsiCo reveals what’s been brewing behind closed doors! Experts predict a thin slip in sales from $22.5 billion last year to a mere $22.3 billion this quarter! And get this—earnings are expected to crash by 11% year-over-year to just $2.03 per share!

Stock Plummeting into Oblivion!

Hold onto your hats—PepsiCo’s stock has been on a relentless downward spiral for over a year! With a staggering 9% decline in the last six months alone, it’s officially one of Wall Street’s worst-performing stocks! While the S&P 500 has been basking in gains, PEP has been drowning! Is it the perfect storm for buyers, or are these sentiments masking a deeper crisis?

Revenue Woes and Earnings Deflation!

In the first three months of fiscal 2025, PepsiCo’s revenue took a nosedive by 1.8%, falling to $17.9 billion. Organic revenue barely scraped by with a meager 1.2% increase. Meanwhile, core earnings? Down by 8% year-over-year to $1.48 per share! To add insult to injury, their unadjusted net income dropped to $1.8 billion—just $1.33 per share!

A Cautious Future or A Plummeting Future?

Revenue managed to beat estimates, but earnings fell drastically short, marking the first quarterly miss in over 20 years! PepsiCo’s management is now waving a red flag, hinting at a bleak forecast—not just for this quarter, but for the entire year! Low single-digit growth for organic revenue and core earnings expected to crumble! Say goodbye to optimistic spending!

A Troubling Global Landscape!

PepsiCo’s head honchos aren’t pulling any punches! They’re witnessing troubling slowdowns in consumer demand right in major markets! China is feeling the pinch, and the domino effect is alive and well—Mexico is impacted by U.S. trends, while Europe remains at a standstill waiting for the squalls to clear.

Losing Fizz—The Snack Crisis!

PepsiCo’s snack segment is sputtering; demand is plummeting, especially in North America! What’s their plan? They’re rolling out desperate measures: promotions, price adjustments, and even diving into the lucrative health and wellness market, snatching up the prebiotic soda brand Poppi for a jaw-dropping $2 billion!

Over the past four months, PepsiCo’s shares have been trading below their 52-week average, and just this week, the stock lost even more momentum! Is this a corporate Titanic about to sink? The financial waters are choppy, and all eyes are on PepsiCo to see if they can navigate these stormy seas! Buckle up; the ride is about to get a lot bumpier!