Stocks To Watch: Coca-Cola, Snap Inc., GAP
The Coca-Cola Company (KO)
The Coca-Cola company has recently suffered revenue losses due to the coronavirus pandemic; however, with such great brand image and notoriety, consumers will doubtlessly return to their products as restaurants and bars reopen in the future.
With a $217.69 billion market capitalization, the Coca-Cola Company is the leader in the non-alcoholic beverages industry. The business boasts a wide variety of products ranging from their name brand Coca-cola soda to protein drinks, such as Fairlife.
Even so, just last month, the company announced their entrance into the alcoholic beverages industry with their new alcoholic seltzer, Topo Chico. This advancement signals Coca-Cola’s plans to infiltrate new arenas and develop their brand beyond its current industries.
Snap Inc. (SNAP)
A new player to watch among the social networking stocks is Snap Inc. In the weeks prior, Snap Inc. (the creators of Snapchat) reported their first profitable fiscal quarter since going public in March 2017. This resulted in a 36% gain for this past week alone.
With a massive user base consisting of mostly young teenagers and adults, Snap Inc. will only continue to grow in the coming years. Additionally, final adjustments to their ad services model allows the company to at last, capitalize on their increased user base.
The Gap Inc. (GPS)
Gap is another company that announced a significant change in their business model this past week, resulting in a 13% increase on Thursday alone. In July, Gap signed a deal with Kanye West and his Yeezy brand. Then, last Wednesday, the company said they will close their retail stores overseas in order to focus their assets on e-commerce.
With the future of retail trending towards online marketplaces, these changes in strategy are critical. In applying this approach, Gap will be able to turn greater profits by saving on rental arrangements. Furthermore, Gap is still trading below their pre-pandemic average price.