The Peel
Posts
Coke Faces Quiet Boycott

Coke Faces Quiet Boycott

🥤 Coca-Cola’s sales slump in North America, as fear and misinformation among Latino consumers fuel quiet boycotts and retail pullback.

Ankit Sinha
June 13, 2025

Silver banana goes to…

In this issue of the peel:

🎮 GameStop shares nosedive after announcing a $1.75 billion debt raise, spooking investors wary of dilution and crypto pivots.
🥤 Coca-Cola’s sales slump in North America, as fear and misinformation among Latino consumers fuel quiet boycotts and retail pullback.
💳 Chime Financial surges in its IPO debut, hinting at renewed optimism in the public markets after a sleepy listing season.

Market Snapshot

Banana Bits

Israel’s defense minister said the country had carried out a strike against Iran, escalating nuclear tensions.
Air India Flight 171 crashes near Ahmedabad; 241 dead, lone survivor in critical condition.
U.S. wholesale prices rose 0.1% in May, below expectations, indicating subdued inflation.
U.K. economy contracts 0.3% in April; exports to the U.S. plunge £2 billion amid tariff impacts.
Chime Financial shares soar 37% on Nasdaq debut, signaling IPO market resurgence.
Elon Musk expresses regret over social media posts targeting Donald Trump amid public feud.

The Daily Poll

Should brands speak out more on immigration issues?

Previous Poll:

Did the U.S. outplay China in the new tariff deal?

Big Win: 11.9% // Kind Of: 25.4% // No: 35.1% // Too Soon: 27.6%

Tilt the Odds in Your Favor

In the competitive world of high finance, every advantage counts. Our exclusive curriculum, designed by industry experts, sharpens your skills and knowledge, making you a top candidate.

Enjoy personalized coaching, targeted internship opportunities, and a robust network of finance professionals with WSO Academy.

» Apply Now «

Macro Monkey Says

The Fed’s Not-So-Invisible Hand May Start Waving

Is the Fed finally about to blink? After two years of tightrope walking between inflation and recession, economists and investors are seeing signs the Federal Reserve may soon loosen its grip. The latest twist? Despite the introduction of new tariffs that should stoke inflation, core price pressures are actually easing.

Core PCE inflation dropped to 2.8%, the lowest in four years. Zoom in closer, and the three-month trend looks even softer, annualizing at just 1.3%, well below the Fed’s 2% target.

Meanwhile, the labor market, long the Fed’s golden goose, is starting to show fatigue. Unemployment is rising, and several economists are questioning whether earlier payroll gains were overstated. Add in faltering job openings and cooling wage growth, and the employment engine is losing steam.

At the same time, financial conditions have quietly eased, with long-term Treasury yields drifting lower, giving the Fed more breathing room.

The Fed’s current stance is still firmly in “higher for longer” territory, but that narrative is beginning to wear thin. With risks growing on both sides of the mandate—price stability and full employment—the central bank may soon be forced to act. They’re not waving the rate-cut flag just yet, but it’s definitely being unfolded.

Source

The Takeaway?

Despite the inflationary pressures of recent tariffs, the Federal Reserve faces increasing evidence of a cooling economy. With subdued inflation and signs of labor market weakness, the case for interest rate cuts is strengthening, suggesting a potential shift in the Fed's policy stance in the near future.

Career Corner

Question

When connecting with mentors from the roster on LinkedIn, should I add a note mentioning I’m in the WSO Academy, or simply send a connection request without a note?

Answer

Yes, strongly suggest. I get connection requests, and it's not entirely clear from the Academy; it just makes a quick accept easier.

Head Mentor, WSO Academy

Check out WSO Academy!

What's Ripe

Oracle Corp (ORCL) 13.3%

Oracle Corporation surged 13.3% on Thursday, following the announcement of its fiscal 2025 third-quarter financial results. The company reported a significant increase in its total remaining performance obligations, reaching $130 billion, up 62% year-over-year, and EPS up 20% to $1.02.
This growth reflects strong demand for Oracle's cloud services and infrastructure technologies, bolstering investor confidence and driving the stock's impressive performance.

Newmont Corporation (NEM) 4.9%

Newmont rose 4.9% on Thursday, benefiting from a rally in gold prices amid persistent global macro uncertainty. But what added momentum to the move was increased investor optimism following fresh analyst buy recommendations. The stock currently trades at $55.92, and based on 18 analyst estimates, the average 12-month price target is $65.55—a 17.2% upside.

What's Rotten

GameStop (GME) 22.5%

GameStop shares plunged 22.5% on Thursday, after the company announced plans to raise $1.75 billion in debt financing—its second such capital raise in recent months. The news, paired with GameStop's recent pivot to B*tcoin investment, unnerved investors wary of dilution and shifting strategy.
Shares fell sharply from $27.1 to $22.1, marking a 20% drop post-announcement. Volatility remains high as the company strays further from its retail roots.

Wingstop (WING) 5.9%

Wingstop saw its stock decline by 5.9% on Thursday, amid broader market pressures on the restaurant industry. Despite strong same-store sales growth reported earlier in the year, investors expressed concerns over rising operational costs and potential margin pressures.
The stock's pullback reflects caution as the company navigates a challenging economic environment.

Thought Banana

Coca-Cola’s Consumer Crisis

Coca-Cola may be one of the world’s most iconic brands, but even the king of carbonated beverages can’t fizz past social pressure. The company is facing an unexpected slowdown in North America—not because of flavor fatigue, but due to a growing chill among Latino shoppers.

According to the Wall Street Journal, recent U.S. immigration crackdowns have driven many Latino consumers, including U.S. citizens and legal residents, to limit public activity out of fear. That includes shopping trips.

This has hit retailers and food and beverage brands hard, with Coca-Cola reporting a 3% decline in North American volume sales in Q1. Making matters worse, misinformation spread online has falsely claimed that Coca-Cola is collaborating with immigration authorities, leading to grassroots boycotts across social media platforms.

In response, Coca-Cola has launched a new bilingual campaign—“For Everyone”—aimed at restoring trust and rebuilding its relationship with the Latino community. But it may take more than a few heartfelt commercials to unseat fear and skepticism deeply rooted in today’s immigration climate.

It’s a start—but probably not enough. Coca-Cola’s new “For Everyone” campaign aims to rebuild trust, but genuine re-engagement may require community partnerships, transparency, and empathy, not just glossy slogans.

The Takeaway?

Coca-Cola’s 3% North American sales dip in Q1 reveals how social and political dynamics can directly impact corporate performance. Latino consumers, a key demographic, are stepping back from public life amid immigration enforcement fears and false rumors of Coca-Cola’s involvement with authorities.

While the company has responded with a bilingual campaign, rebuilding trust will require more than marketing—it’ll take cultural sensitivity, community outreach, and a deeper understanding of the anxieties shaping consumer behavior.

The Big Question: Can a bilingual ad campaign fix what fear and misinformation broke?