Recent events have reminded investors that not even an iconic name such as Coca-Cola (NYSE: KO) is immune from adverse affects related to the coronavirus. Yes, the company beat revenue and earnings estimates in its most recent report. However, investors still sold off the stock as the events that the company depends on for roughly half of its sales did not take place.
But looking more closely at the numbers, the COVID-19 pandemic may look more like an excuse to sell than a real reason to sell. Even when the company emerges from the pandemic, the company's increasingly burdensome dividend and diminishing growth prospects may have more of an effect on Coca-Cola than any viral outbreak.
For those bullish on Coca-Cola stock, some might wonder if recent events may have created a possible buying opportunity. With economic shutdowns brought about by the coronavirus pandemic, Coca-Cola stock fell along with other consumer brands. At the time of this writing, the stock has dropped by almost 25% from its 52-week high.
Source Fool.com