
Coca-Cola confirms a cane-sugar version of its trademark cola is coming to the US this fall
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Coca-Cola reported better-than-expected earnings in the second quarter as higher prices offset weaker sales volumes.
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Case volumes fell 1 percent globally and 1 percent in North America, but Coke said Tuesday that pricing rose 6 percent for the April-June period.
Global case volumes of Coca-Cola fell 1 percent, mostly due to weaker sales in Latin America. One bright spot was Coca-Cola Zero Sugar, which saw volumes grow 14 percent.
Traditional Coca-Cola still far outsells the zero-sugar variety, but consumer demand for zero-sugar versions is growing much more quickly.
Global case volumes of juice, dairy and plant-based beverages fell 4 percent, Coke said. Sports drink case volumes were down 3%, as higher demand in North America was offset by declines in Latin America.
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Revenue for the Atlanta company rose 1 percent to $12.5 billion. Adjusted for one-time items, quarterly revenue was $12.6 billion. That was in line with Wall Street's forecast, according to analysts polled by FactSet.
Net income jumped 58 percent to $3.8 billion. Its adjusted net income was 87 cents, which was higher than the 83 cents Wall Street forecast.
Coke said Tuesday it now expects full-year adjusted earnings to grow 8 percent. At the start of the year, Coke had expected earnings to grow 8 percent to 10 percent, but in April it lowered that range to 7 percent to 9 percent. Coke earned $2.88 per share in 2024.
Shares of Coca-Cola Co. were down slightly early Tuesday as were all major US markets.

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CNBC
8 hours ago
- CNBC
Earnings playbook: Reporting season ramps up with more ‘Magnificent 7' results this week
This week marks the busiest week of the second-quarter corporate earnings season, and some of the world's biggest companies are on the docket. In coming days, 151 companies in the S & P 500 are slated to release their latest quarterly results. That includes four of the "Magnificent Seven," Meta Platforms and Microsoft on Wednesday and Amazon and Apple on Thursday. They will follow those from two other notable megacap technology companies, YouTube and Google parent Alphabet and Tesla . Alphabet shares closed higher Thursday after second-quarter earnings and revenue topped expectations, while Tesla shares nosedived after the electric vehicle maker saw auto sales decline for a second consecutive quarter . Corporate earnings have proven strong so far, with more than 82% of the 169 S & P 500 companies that have reported beating Wall Street's expectations, according to FactSet data. Here is CNBC Pro's breakdown of what to expect in some of the coming week's most notable reports. All times are ET. Tuesday Procter & Gamble is scheduled to report earnings before the opening bell, followed by a conference call at 8:30 a.m. Last quarter: Procter & Gamble slashed its 2025 guidance for core earnings per share and revenue, citing a slowdown in consumer spending and the effect of President Donald Trump's higher tariffs. CEO Jon Moeller also said price hikes were likely. This quarter: Analysts surveyed by LSEG expect slight year-over-year earnings and revenue growth from the Tide detergent and Charmin toilet paper owner. What to watch: Heading into the results, JPMorgan's Andrea Teixeira downgraded Procter & Gamble to a neutral rating from outperform on Friday. The analyst cited the outlook for "another lackluster quarter and normalization of category growth" as justification. "We are taking a pause because we think PG organic sales growth will remain soft for the next few quarters as the categories have decelerated," Teixeira added. That followed a downgrade from Evercore ISI in mid-July to an in-line rating from outperform . While P & G performs well in traditional brick-and-mortar stores like Costco and Walmart, Evercore ISI found it was losing share on Amazon. What history shows: Procter & Gamble has a strong earnings track record, with data from Bespoke Investment Group showing the Cincinnati-based company beating earnings estimates 85% of the time. Bespoke data also shows that P & G has surpassed analysts' earnings expectations for nine consecutive quarters. Boeing is scheduled to report earnings before the market opens, followed by a conference call at 10:30 a.m. Last quarter: Boeing narrowed its losses and said it planned to seek approval from the Federal Aviation Administration later this year to increase production of 737 Max jets. This quarter: The Street anticipates that the commercial jet maker and defense contractor will post revenue growth above 29% compared to the year-earlier period, according to LSEG. What to watch: Analysts at Morgan Stanley and JPMorgan are bullish heading into Boeing's quarter. "Absent any unexpected Defense charges in 2Q25, we see the setup as largely positive for BA heading into the print," Morgan Stanley's Kristine Liwag wrote. "With good progress on deliveries and potential upside to near-term cash flow, we remain comfortable into earnings and lean positive," JPMorgan's Seth Seifman said. What history shows: Boeing has beaten Street earnings estimates 67% of the time, according to Bespoke, and shares have seen average gains of 0.5% in the following session. Wednesday Meta Platforms is scheduled to report earnings after the market closes, followed by a conference call at 5:00 p.m. Last quarter: Meta revenue surpassed Street expectations , and its second-quarter forecast matched what analysts were expecting. This quarter: Analysts expect the Facebook and Instagram parent to post year-over-year earnings and revenue growth of more than 14%, LSEG data shows. What to watch: Bernstein analyst Mark Shmulik recently raised his price target to $775 from $700 and reiterated an outperform rating on the stock. "Despite some eyebrow-raising offers tied to their high profile AI talent hiring spree, Meta appears to be the easiest name to own in digital ad land. They continue to be a clear AI winner, with positive ad checks supporting company commentary on improving ad efficacy," he wrote. What history shows: Data from Bespoke Investment Group shows that Meta has beaten earnings expectations in 10 straight quarters and revenue estimates in 11. Shares average about a 2% rise in the next session. Microsoft is scheduled to report earnings after the closing bell, followed by a conference call at 5:30 p.m. Last quarter: Microsoft earnings and revenue beat Wall Street estimates, and the Windows parent offered strong guidance. This quarter: Analysts expect that Microsoft, led by CEO Satya Nadella, will see earnings and revenue growth of roughly 14% versus last year, according to LSEG. What to watch: Analysts at UBS and Citigroup are amongt those who grown more optimistic ahead of Microsoft's quarterly results. Last week, UBS hiked its price target to $600 per share from $500 while maintaining a buy rating. "Bottom line, the outlook on the two biggest factors driving Microsoft shares on prints — Azure growth and EPS revisions — appears to be positive," wrote analyst Karl Keirstead. "We conclude that 4Q/Jun c/c Azure growth of 36% seems doable." What history shows: Microsoft has a history of beating expectations, with the company topping Street earnings estimates 11 quarters in a row and revenue forecasts for nine straight quarters, according to Bespoke. In total, the owner of Xbox videogames beats earnings estimates 82% of the time. Thursday Amazon is scheduled to report earnings after the stock market closes, followed by a conference call at 5:00 p.m. Last quarter: Amazon issued light guidance , citing "tariffs and trade policies" and "recessionary fears." This quarter: LSEG data indicates that analysts expect the dominant e-commerce platform in the U.S. to report single-digit earnings and revenue growth compared to the same period a year ago. What to watch: Bank of America recently reiterated its buy rating and lifted its 12-month price target on the stock by $17 to $265. "We think 2Q Retail is setting up for a solid quarter, plus a strong 1Q for [Amazon Web Services] backlog and accelerating quarterly AWS capex spending should drive accelerating 2H AWS growth," wrote analyst Justin Post. Amazon may issue solid third-quarter revenue guidance, Post added, pointing to a longer Prime Day event in July as a potential catalyst. What history shows: Bespoke data finds that Amazon has topped earnings estimates for nine consecutive quarters, and the stock has historically advanced almost 1% the day after reporting results. Apple is scheduled to release earnings after the closing bell, followed by a conference call at 5:00 p.m. Last quarter: Apple's Services revenue in the fiscal second quarter reported in May missed analyst expectations , with CEO Tim Cook saying it was "very difficult" to predict tariff costs beyond June "because I'm not sure what will happen with tariffs." This quarter: Analysts see single digit top- and bottom-line growth year over year for the iPhone maker, according to LSEG. What to watch: Goldman Sachs analyst Michael Ng recently trimmed his price target to $251 from $253, but kept his buy rating. "Apple should deliver a revenue and EPS beat, driven by (1) double-digit growth in Services (+11% yoy); (2) strength across Products including iPhones, Mac, iPad, and Wearables; and (3) better-than-expected gross margins reflecting on better tariff-related costs and forex headwinds," he wrote. Service revenue will expand as a result of continued spending in Apple's App Store, Ng said. What history shows: Apple has beaten both earnings and revenue expectations for nine straight quarters, with an overall earnings beat rate of 89%, Bespoke said. The stock averages a gain of 1.2% on the first trading day following each earnings release. — CNBC's Lisa Kailai Han contributed to this report.
Yahoo
a day ago
- Yahoo
2 High-Flying Artificial Intelligence (AI) Stocks to Sell Before They Plummet 74% and 30%, According to Select Wall Street Analysts
Key Points Many companies in the center of the AI revolution have seen their stock prices soar in the last three years. These two companies have produced very strong operating results. But their stock prices have outpaced their financial growth, leading to sky-high valuations. 10 stocks we like better than Palantir Technologies › Artificial intelligence (AI) has become one of the biggest talking points for businesses over the last few years. The number of S&P 500 companies mentioning "AI" on their earnings call climbed from less than 75 in 2022 to 241 during the first quarter, according to FactSet Insight. A handful of companies have built big businesses around demand for artificial intelligence, or integrated AI to rapidly expand their addressable markets. Many of those companies have seen their stock prices soar over the last few years. But not every high-flying AI stock is worth buying after a massive run up in its price. Wall Street analysts have soured on two of the strongest performers over the last few years. Some analysts now see tremendous downsides ahead. Here are two AI stocks that could plummet over the next year, according to select Wall Street analysts. 1. Palantir Technologies (74% potential downside) Palantir Technologies (NASDAQ: PLTR) has been one of the best-performing stocks over the last few years. Since the start of 2023, the stock price has climbed an eye-popping 2,290%, and it now trades with a market cap exceeding $350 billion, as of this writing. But multiple analysts think the stock has climbed too far, too fast. Just seven analysts covering the stock rate it a buy or the equivalent. Seventeen say to hold it, and Palantir has four sell ratings. The lowest price target on the Street is RBC's Rishi Jaluria, who has a $40 price target on the stock, a 74% drop from its current price. The reason for the low price target isn't lack of financial results. Palantir has seen its revenue grow substantially over the last few years, as it expands its addressable market through its Artificial Intelligence Platform, or AIP. The new platform makes it easier for users to interact with the big data software and find useful business insights and help make decisions. That's expanded the use cases for Palantir's software, especially as businesses generate more and more data. As a result, Palantir's U.S. commercial revenue has climbed quickly, including a 71% increase in the first quarter. Moreover, Palantir has exhibited tremendous operating leverage. Instead of focusing on marketing and sales, CEO Alex Karp has put most of Palantir's manpower into building a better product. The idea is a better product will do the selling for itself. As a result, adjusted operating margin climbed to 44% in the first quarter, up from 36% in the first quarter last year. Indeed, Palantir is firing on all cylinders. But Jaluria and many others on Wall Street think the valuation of the stock has climbed too high. "We cannot rationalize why Palantir is the most expensive name in software. Absent a substantial beat-and-raise quarter elevating the near-term growth trajectory, valuation seems unsustainable," he said. Shares of Palantir currently trade for 228 times forward earnings and 78 times revenue expectations over the next 12 months. To put that in perspective, only a handful of S&P 500 stocks trade for more than 100 times earnings, and no others trade for more than 26 times sales expectations. Meanwhile, there are other companies growing sales even faster than Palantir, so it's a very hard multiple to justify. 2. CrowdStrike (26% potential downside) CrowdStrike (NASDAQ: CRWD) has seen its share price climb 352% since the start of 2023 on the strength of its Falcon security platform. Despite a massive outage that shut down numerous IT systems around the world last July, the company has bounced back quickly. The stock has more than doubled since its lows last summer, reaching a market cap of nearly $120 billion. But analysts are starting to look at CrowdStrike's stock with an increasingly critical eye. The stock received three downgrades this month from buy to hold, and one analyst initiated coverage with a hold as well. Over the last three months its buy ratings on Wall Street dropped from 41 to 31. And the lowest price target among them is $350, implying a 26% drop from the price as of this writing. Again, valuation appears to be the biggest concern for the stock. Operationally, CrowdStrike has managed to grow its customer base as more enterprises look to consolidate their cybersecurity needs and opt to use CrowdStrike's broad portfolio of services. Forty-eight percent of its customers now use at least six of its modules, as of the end of the first quarter. That's up from 40% two years ago. CrowdStrike is leveraging AI on its platform with agentic AI capabilities through its new Charlotte platform, which helps take action upon detecting a security threat to button up the vulnerability. That's on top of its machine learning capabilities, which help it detect those threats in the first place. And with a growing customer base, it has more data to ingest into its AI algorithms, giving it a significant advantage over smaller competitors. CrowdStrike has managed very strong growth over the last few years. Its annually recurring revenue climbed 20% in the first quarter, exceeding its guidance, and management expects that number to accelerate through the rest of the year as more businesses adopt its Falcon Flex platform. Still, the stock now trades at a price-to-sales ratio of 22 times revenue expectations over the next 12 months. And while that might not seem so expensive compared to Palantir, it makes it the third-highest priced stock in the S&P 500 by that valuation metric. And if you prefer to look at its earnings, it's one of the handful of stocks in the index trading above 100 times estimates, 135 times, to be exact. While it's possible CrowdStrike or Palantir continue to climb higher from here, it's probably worth taking money off the table at this point and finding better values in the market. Do the experts think Palantir Technologies is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Palantir Technologies make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,041% vs. just 183% for the S&P — that is beating the market by 858.71%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Palantir Technologies. The Motley Fool has a disclosure policy. 2 High-Flying Artificial Intelligence (AI) Stocks to Sell Before They Plummet 74% and 30%, According to Select Wall Street Analysts was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


CNBC
a day ago
- CNBC
More stock market records, more trade deals, more trade talks — plus, lots of earnings
The S & P 500 rose every day this past week as trade deals, both in the works and announced, lent support to the market. The index heads into the final stretch of a strong July at record highs. For the week, the S & P 500 gained nearly 1.5%. The Nasdaq did not go wire to wire in the green this week, but it did rise 1%, closing at another record high. Ahead of the last trading day of the month on Thursday, the S & P 500 was up almost 3% for July, while the Nasdaq jumped 3.6%. The best session of the week came on Wednesday after President Donald Trump announced the night before what he called a "massive" trade agreement with Japan ahead of the Aug. 1 deadline. The deal settled on a 15% tariff on goods entering the United States from Japan, including automobiles. In exchange, Japan will invest $550 billion in America and open its market to more imports from the U.S. The trade focus now shifts to China and the European Union. Next week, Treasury Secretary Scott Bessent travels to Stockholm for talks with Chinese officials about extending the negotiating window for a trade deal. Regarding the EU, Trump said Friday he sees only a "50-50 chance" of a deal with the trading bloc. The president plans to meet with EU officials in Scotland on Sunday. .SPX .IXIC 5D mountain S & P 500 and Nasdaq 5-day performance The other big news of this past week was Trump's trip to the Federal Reserve on Thursday. He toured the central bank renovation site with Fed Chairman Jerome Powell. They spoke with reporters and had an uncomfortable moment over renovation costs. Trump signaled that he's no longer considering firing Powell. The president told reporters Friday that Powell and he had a "good meeting" about interest rates, and he believes the Fed will start cutting them. Powell has kept rates steady since December 2024, saying central bankers need more time to see how finalized tariffs will impact inflation. On the economy, the June existing home sales report was released on Wednesday, followed by June new home sales on Thursday. While sales of both were slower than expected, the reports diverged when it came to prices. The median price of a previously owned home sold in June was $435,300, up year over year and the 24th consecutive month of annual increases, according to the National Association of Realtors. However, government data showed the median sales price of new homes sold last month was $401,800 — below May and below year-ago levels. Watching housing price trends is important because it can give us signals on where shelter costs might be headed, which have been a key factor keeping overall inflation elevated. Second quarter earnings season has kicked into full gear, with results thus far coming in better than expected. According to FactSet, a third of the S & P 500 companies have already reported, with 80% of those delivering upside surprises to both sales and earnings expectations. Within the Club portfolio, we heard from Danaher, GE Vernova, Capital One, Honeywell, and Dover. Talk about a blowout. GE Vernova came into the quarterly print near all-time highs, setting a high bar of expectations, which it easily hopped over. The stock was rewarded with record highs and was our top performer of the week, with 12% gains. Shares have nearly doubled in 2025 versus the S & P 500's 8.6% advance this year. GE Vernova on Wednesday reported strong order growth and robust EBITDA margin expansion. EBITDA stands for earnings before interest, taxes, depreciation and amortization. Strong backlog growth also gives us confidence that end market demand remains healthy. "This era of accelerated electrification is driving unprecedented investments in reliable power, grid infrastructure, and decarbonization solutions," CEO Scott Strazik said on the post-earnings call. Danaher on Tuesday delivered a strong set of results, albeit against relatively low expectations. The company did outpace expectations on the top and bottom lines, thanks to strength in all key operating segments. While Chinese sales in biotechnology and life sciences grew, the positive numbers were overshadowed by sustained weakness in diagnostics due to the countries volume-based procurement program. The quarter was enough to spark a relief rally and keep us in the name. Danaher was our second-best performer this week, rising 8%. Despite a good week, the stock was still down 10.5% year to date. Capital One delivered a noisy quarter on Tuesday due to the Discover integration. While shares were among our losers this week, down 2.5%, they have been on a roll, up more than 19% year to date. We saw enough the quarter to reaffirm our view that there will be some serious long-term benefits resulting from the acquisition and its payment network. Capital One is one of only two banks in the world with their own credit card network, the other being American Express. We will look for the company to leverage that edge into earnings growth and for the stock to be rewarded for it with a higher multiple as the integration progresses and management executes on their game plan. We were surprised by Thursday's more than 4% stock drop on Dover 's earnings. In addition to a top and bottom-line beat, the company reported a record adjusted segment EBITDA margin, an acceleration in bookings that provides visibility into the future. It also outlined several growth and productivity investments to support long-term growth. Compounding the strong results, management raised its full-year outlook on both revenue growth and adjusted earnings per share. For the week, Dover lost about 1%. Like Dover, Honeywell stock was also dinged after it reported Thursday morning, despite the results coming in largely better than expected. Shares were our worst performer of the week, down 5.2%. While there was some weakness in aerospace and in segment margin performance, we were satisfied with the explanation provided by management on the call and believe the weakness provides a buying opportunity ahead of what we think will be a value-creating breakup into three separate operating companies. The split will start in the fourth quarter of this year, when management spins off the advanced materials business, and continue in 2026 with the separation of aerospace, which will leave the automation business as the third public company. In the week ahead, we will get seven more Club name earnings, including Amazon , Apple , Meta Platforms , and Microsoft . (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.