Coca-Cola stock rose 1.42% to $60.55 in pre-market trading after the company’s revenues beat analyst expectations.
Worldwide sales grew 7% (pdf) in the fourth quarter to $10.8 billion, higher than the $10.7 billion expected by Wall Street analysts polled by FactSet. The company’s successes came even as demand in the US fell. Executives told investors in a call Tuesday (Feb. 13) that it felt a “significant impact” from inflation, and war in the Middle East hit sales globally.
The company’s stock price rally may not seem like much, but it means Coke shares are continuing to move into a new, higher price range (good news for investors). Coca-Cola shares have only hit $60 or higher in the past two years, and it was unclear last year whether they’d recover to that price range as the company took a hit from inflation
Coca-Cola stock rose above the $20 to $30 range in the early 2010s and has mostly been on the up-and-up since. Shares surpassed $60 in early 2022, then again in early 2023.
But then the company suffered from inflation, high interest rates, and concerns that blockbuster weight-loss drugs could hurt demand of sugary drinks. Its stock fell considerably in the second half of last year but is once again rallying thanks to its rising demand in Germany, Mexico, and its emerging markets in India and Brazil.
Notably, Coca-Cola’s market cap is about $24 billion higher than its rival PepsiCo, which reported a drop in its fourth-quarter revenue—its first dip in sales year-over-year since 2020—last week.
This is a developing story and will be updated.