A new class of weight-loss drugs has rattled global equity markets, sending shares of everything from food and beverage companies to medical-device makers tumbling. As earnings season kicks into high gear, firms are expected to reveal if consumer behaviors are being altered by the likes of Ozempic.

So far, fear has driven investors to sell consumer-exposed stocks. A basket of such companies — including Oreo cookies maker Mondelez International Inc. and Modelo beer producer Constellation Brand Inc. — is down nearly 9% since early August with losses roughly double those of the S&P 500 Index, while makers of things like insulin pumps have wiped out close to a third of their value over the same stretch amid concerns that fewer people will need their products.

  • Raiderkev@lemmy.world
    37·
    1 year ago

    This has been in financial news for a few weeks. I personally don’t think the weight loss drug has anything to do with it. What I think happened is these companies jacked the price up on their “food”. People already know it’s bad for you, and raising price just led people to make better, more health conscious decisions rather than pay $6 for a bag of chips. I know anecdotally that I have done exactly that, and when I do get chips or crackers nowadays, it’s the store brand. Fuck Mondelez, Frito-Lay and coca cola. I’m not paying higher price for stuff I already know I shouldn’t be eating.