Shares of Coca-Cola hit all-time high as investors seek safety in ubiquity
Traders turn to soft drink sellers Coca-Cola and Pepsi to navigate a hard market.
Coca-Cola shares jumped over 3% to an all-time high Thursday, bucking a broader market downturn.
The stock’s rally follows strong earnings last month, where the company easily beat expectations while raising prices — proof that global demand remains strong. Coke has proven its resilience as consumers worldwide keep reaching for its name-brand snacks and drinks, even as costs climb.
In Q4, CEO James Quincey brushed off concerns about soaring aluminum prices, driven higher by new tariffs, emphasizing that packaging is just one piece of the puzzle.
“I think we’re in danger of exaggerating the impact of the 25% increase in the aluminum price relative to the total system,” Quincey said on the earnings call in February. “It’s not insignificant, but it’s not going to radically change a multibillion-dollar US business.”
Coca-Cola has long been a defensive stock, backed by strong brand loyalty and the ability to pass costs onto consumers. That status seemingly held strong Thursday, with shares of rival PepsiCo also climbing 3%.
