Pepsi pops on report Elliott has taken a $4 billion stake in the soda and snack giant
The news comes as Pepsi battles weaker demand, tariffs, and pressure from rivals like Coca-Cola.
PepsiCo stock jumped nearly 5% in premarket trading Monday after The Wall Street Journal reported that Elliott Investment Management has quietly taken a roughly $4 billion stake in the company — one of its biggest bets ever.
Per the WSJ, it’s an activist position, which means the investment management firm will be pushing Pepsi’s leadership to make changes it thinks will boost the company’s market value.
It’s critical timing for the beverage giant, which has seen slower demand across its core snacks and drinks portfolio. In addition to its namesake soda, Pepsi also owns brands like Mountain Dew, Gatorade, Lay’s, Doritos, and Quaker Oats. But the company has struggled of late, losing market share to peers like Coca-Cola and Dr Pepper. It has seen its market value slide from around $270 billion in 2023 to about $203 billion today.
Pepsi’s problems have only intensified in recent months, pressured by tariffs and price-sensitive shoppers. Still, management has been trying to create more value with lower price points and a revamp of core snack brands like Lay’s and Tostitos. In July, Pepsi topped Wall Street’s forecasts for second-quarter earnings and revenue and reaffirmed its full-year outlook. Still, for the first half of this year, Pepsi’s North American sales volume for beverages dropped 3%, while its convenience food volume in the region fell 1%.
The stock is down about 16% over the past 12 months.
