Why Mondelez International (MDLZ) Stock Is Nosediving

MONDELEZ INTERNATIONAL INC Common Stock MDLZ shares are trading lower by 5.6% to $61.41 Friday morning. Shares of several soft drink and food stocks are trading lower in possible reaction to comments from Walmart suggesting weight-loss drugs are impacting food sales.

If consumers are becoming more health-conscious and are actively seeking out weight-loss drugs or products to help with weight management, it may lead to reduced demand for certain food products, especially those perceived as less healthy or indulgent.

This shift in demand can negatively affect the sales and profitability of companies like Mondelez that produce snacks and treats.

Additionally, rising yields could negatively impact dividend stocks such as Mondelez. The stock is also falling amid overall market weakness recent strength in Treasury yields.

Mondelez stock is also known for its dividend payments, and it is often considered by income-focused investors. When interest rates rise, fixed-income investments like bonds become more attractive in comparison to dividend-paying stocks.

This can lead some investors to shift their investments away from stocks like Mondelez, potentially putting downward pressure on its stock price.

See Also: Coca-Cola Short Seller Says Dominance Fizzles In Face Of Bubbly Upstarts, Weight Loss Drugs

Walmart Reports Decrease In Demand

John Furner, the CEO of Walmart's U.S. operations, confirmed in a recent interview that the company has observed a “slight pullback” in the overall shopping basket of customers using these medications...Read More

According to data from Benzinga Pro, MDLZ has a 52-week high of $78.59 and a 52-week low of $54.95.