What's Going On With Pepsi Stock?

PepsiCo Inc PEP stock is trading lower by roughly 4% over the past week after President-elect Donald Trump announced Robert F. Kennedy Jr. as his nominee to lead the Department of Health and Human Services (HHS).

The decision has raised fears of stricter health and nutrition regulations, potentially affecting PepsiCo's operations.

What To Know: Kennedy, an environmental activist and vaccine skeptic, has been vocal about corporate influence in public health and what he terms the "industrial food complex." With PepsiCo's expansive portfolio, which spans sugary soft drinks, snack foods and health-conscious brands, the company may face increased scrutiny under Kennedy's leadership.

PepsiCo's beverages, including flagship brands Pepsi and Mountain Dew, as well as Gatorade and Tropicana, could come under fire for their sugar content. Kennedy's past criticism of unhealthy diets has fueled speculation that new regulations could target sugary drinks, either through tighter labeling laws or broader public health initiatives.

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Snack foods, another key pillar of PepsiCo's business, also face potential headwinds. Products like Lay's, Doritos and Cheetos dominate the processed snack market, making them susceptible to policy changes aimed at reducing consumption of high-calorie, low-nutrition foods.

What Else: Beyond its traditional offerings, PepsiCo has expanded into health-focused products like Quaker Oats, Naked Juice and Sabra Hummus. While these brands may be better positioned in a shifting regulatory environment, the potential for stricter rules on marketing practices and supply chain transparency could still pose challenges.

Kennedy's stance on marketing to children might also directly impact PepsiCo's advertising strategies, particularly for its snacks and beverages.

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How To Buy PEP Stock

By now you're likely curious about how to participate in the market for PepsiCo – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of PepsiCo, which is trading at $158.62 as of publishing time, $100 would buy you 0.63 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, PEP has a 52-week high of $183.39 and a 52-week low of $158.03.