Pepsi Eyes Beverage Growth

Seemingly everyone from global conglomerates to content creators is getting in on the beverage space. That’s because beverage products tend to have much higher margins than food products. And if you can market your way through the competitive space, you can make a pretty penny. 🧃

If you need evidence of that, just look at one of the best-performing stocks in the market, Monster Beverage. Since going public about thirty years ago, it has returned nearly 270,000%. It’s almost as if its stock price drank a lot of monster energy. 🤩

Or check out Celsius Holdings continuing the epic run that began when it went public. 🗓️

Or the many creator or celebrity-driven drink brands like Logan Paul’s Prime and Ryan Reynolds’ Aviation Gin. The point is that the beverage space can be a very profitable one. 🍸

And with pricing power on its current products diminishing, Pepsi is looking to beverages to help drive growth. Its newest idea is an expansion to the Gatorade brand, with a new “Gatorade Water.” It’ll launch early next year as an electrolyte-infused, unflavored water product that’s filtered with a seven-step inflation process and contains alkaline and enhanced pH levels. 🌊

The company says roughly 30 million consumers do not buy enhanced water at all. But it’s making the bet that the primary reason is because it’s not from a brand they know and trust. Thus, offering the product under the Gatorade name and packaging could pull new customers into the market.

The brand remains the recovery drink category leader, but Gatorade sales haven’t experienced as strong growth as some competitors. That led to the company expanding its portfolio into energy beverages, protein powders, capsules, and more aimed at those looking to improve their health.

We’ll have to wait and see if this bet pays off. But with the popularity of water brands like “Liquid Death,” anything is possible. 🤷

Japan’s Nippon Takes Over U.S. Steel

After months of bidding, U.S. Steel finally has a buyer. However, the auction’s winner has some parties concerned. 🤔

Japan’s Nippon Steel emerged as the top bidder for the 122-year-old steelmaker, beating out offers from Cleveland-Cliffs, ArcelorMittal, and Nucor. Its $55 per share price represents a 142% premium to where $X shares were trading before Cleveland-Cliffs’ $35-per-share offer kicked off the bidding war.

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DWAC Bounces Back (Again)

We mentioned last week that investors were preparing for a politically driven 2024, and boy, that accelerated quickly. 😜

Trump-linked stocks Digital World Acquisition Corp, Phunware, and Rumble jumped sharply today after Ron DeSantis canceled his presidential run.

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March Madness Continues At NYCB

When regular people talk about March Madness, they’re referring to college basketball. But when traders and investors talk about March Madness, they’re referring to a regional bank stock imploding.

We’re about a year out from three regional banks failing and/or being rescued, and now the sharks are circling New York Community Bancorp. The long story short, until today, is that the regional lender has too much commercial real estate exposure, weak internal controls over financial reporting, and a new CEO trying to right the ship. 🗞️

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Biotech Buyout Spree Continues

It may be the last week of the year, but many companies are rushing to get deals done before year-end. Two significant transactions in the biotech space were announced today, so let’s dive in. 👇

The first deal involves RayzeBio, which raised $358 million via an initial public offering (IPO) just three months ago. However, its time as a public company is being cut short by Bristol Myers Squibb, which is acquiring the radiopharmaceutical therapeutics company for $62.50 per share in cash. 💰

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