When it comes to beverages coca cola is one of the largest companies in the whole world. However, according to recent reports the company has forecasted a slow growth of only 4% in 2019 which has made many of its investors worried. While releasing forecast statement for 2019, the company’s officials said that they are expecting to grow at a four percent only. Now this news has disappointed many investors and due to which shares of coca-cola has dropped by more than 8% in day trading. Whenever a company releases something disappointing effect of such news can be observed by looking at its stock prices.
So far the company’s shares have gone down by more than 8%, making it the worst trading day since October 2009. While releasing statement company’s officials think the only reason why they do not see good economic growth is because of a global slowdown and some external issues like a trade war. A few days ago IMF said that the world economy would grow at a slow rate because of some geopolitical conditions like a trade war between US-China. It seems like coca cola is one of those companies which is getting lots of hit because of ongoing trade war disputes.
Some reports are indicating a possible trade deal between the US and China will happen in next few days. Recently Trump administration resumed their work and ended one of the most extended government shutdowns which country has never seen before. Some experts are predicting shutdown might have also affected on company’s financial position. CEO James Quincey while speaking to investors said that this new year would be more volatile and uncertain and company is prepared for that situation also. Coca-cola is trying their best to rise in the market, and that’s why a few days ago company announced a new flavored cold drink.