Latest news with #consumerconfidence
Fast Company
a day ago
- Business
- Fast Company
Marketing in an age of economic uncertainty
Let's get this out of the way: We constantly live in uncertain times. Periods of tranquility are actually an aberration, if not an illusion. The relationship between marketing budgets and economic volatility has always been complex. What we're witnessing isn't just the usual ebb and flow of consumer confidence or standard market corrections. It's an unprecedented convergence of tariff confusion, inflationary pressures, supply chain disruptions, and debt refinancing challenges. As I talk to CMOs and marketing leaders across industries, one word keeps surfacing: paralysis. Decision makers find themselves frozen, unsure whether to commit to long-term advertising contracts, unable to accurately forecast costs, and struggling to craft messaging that resonates in a consumer landscape where spending power is increasingly unpredictable. The historical perspective: Who thrives in downturns? When I look back at previous economic contractions—particularly 2008 and 2020—a clear pattern emerges that separates survivors from thrivers. In 2008, as financial markets collapsed, brands like Amazon, Netflix, and Hyundai didn't retreat. They advanced. Netflix invested heavily in its streaming service during the financial crisis, laying the groundwork for its eventual dominance. Hyundai introduced its ground-breaking 'Assurance Program,' allowing customers to return newly purchased vehicles if they lost their jobs—a true masterstroke that increased Hyundai's market share while competitors were seeing double-digit sales declines. The 2020 pandemic presented similar divergent paths. While many brands slashed marketing budgets in panic, companies like Zoom and DoorDash significantly increased their marketing investments, recognizing the unique moment to capture market share when consumers were rapidly forming new habits. The common thread? These companies didn't view marketing as a discretionary expense to be cut during uncertainty. They saw it as a strategic lever, one that should be pulled harder during hard times. 4 strategic approaches for the uncertainty-conscious marketer Here's what the most forward-thinking marketers are doing now to navigate the choppy waters ahead: They're embracing flexibility in all media contracts. The days of rigid, long-term commitments are giving way to more agile arrangements that allow for budget reallocation as economic conditions shift. This means negotiating pause clauses, shorter commitment windows, and performance-based terms that protect all contracted parties. Budgets are shifting toward measurable, adaptable channels. While social media and traditional media face the deepest anticipated cuts (41% and 43% respectively), digital advertising continues to gain market share despite economic concerns. Digital is projected to encompass up to 79% of total ad spend by 2030, up from its current 67%. Message content is being entirely rethought. In the face of economic anxiety, brands need messaging that acknowledges reality while providing genuine value. We're seeing this play out in automotive advertising, where some manufacturers are emphasizing their American manufacturing credentials. Ford's 'From America, For America' campaign represents a strategic positioning that resonates in an era of tariff concerns. As Hyundai, in 2008, these advertisers are using the moment to emphasize their particular brand's appeal. AI is being leveraged not just for cost cutting but for scenario planning. The most sophisticated marketing teams are using AI to model multiple economic outcomes and prepare messaging, budget allocations, and channel strategies for each scenario. The creative reset: How agencies have already adapted It's worth noting that the industry isn't starting from scratch in facing these challenges. Client behavior on creative development has undergone a dramatic transformation over the past several years. The best independent agencies have already restructured their operations in response. Gone are the days of lengthy creative development cycles and rigid campaign frameworks. Anticipating these changes years ago, independent shops have largely embraced agile methodologies that align perfectly with today's economic realities. In many ways, the independent agency sector has already prepared for exactly this kind of destabilizing environment. They've built their businesses around speed and adaptability rather than scale and standardization. As such, they're uniquely positioned to help steer brands through bumps ahead without sacrificing creative impact or market presence. Brand versus performance in uncertain times Perhaps the most critical strategic question facing marketers is how to balance brand building against performance marketing when budgets contract. Historical data consistently shows that brands maintaining or increasing their share of voice during downturns emerge in stronger positions when markets recover. Yet short-term revenue pressures make performance marketing irresistibly tempting when every dollar must be justified. The smart play here isn't choosing one over the other but reimagining how all of these factors work together. Performance marketing can be designed to build brand equity simultaneously. Brand marketing can incorporate more direct response elements. The artificial wall between these disciplines must come down to survive economic headwinds. Opportunity within adversity The brands that will emerge strongest from this period of uncertainty won't be those with the largest budgets, but those with the clearest strategic vision, the most agile execution, and the courage to maintain presence when competitors retreat. Economic uncertainty doesn't change the fundamental truth that share of voice leads to share of market. It simply raises the stakes and rewards those who can maintain their voice when others fall silent. Looking at the latter half of 2025, the marketing leaders who view this period not as a time to hide but as a rare opportunity to stand out will be the ones writing the success stories we'll be studying for years to come.
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Costco, Marvell, Dell: Stocks to Watch After-Hours
🔎 Costco Wholesale (COST): The warehouse-club chain's shares traded near flat postmarket after it logged higher profit despite softening consumer confidence. ↘️ Marvell Technology (MRVL): The chip maker's shares slipped 1%. Marvell swung to a profit, fueled by what executives called strong demand for artificial intelligence. ↗️ Dell Technologies (DELL): Shares rose 1.5% after-hours following the maker of computers and software raising its earnings guidance.
Reuters
2 days ago
- Business
- Reuters
New Zealand consumer confidence falls in May
May 30 (Reuters) - Consumer confidence in New Zealand fell in May, with stubbornly high inflation expectations holding back purchasers, ANZ-Roy Morgan data showed on Friday. "Household inflation expectations don't have a tight correlation with actual inflation outcomes," said ANZ chief economist Sharon Zollner. "But the perception that inflation is going to be so high is likely to contribute to the sense of a cost-of-living crisis, potentially dampening spending, if anything." The consumer confidence index fell to 92.9 in May from 98.3 in April. A reading above 100 shows optimism, while below that indicates pessimism. Consumer inflation expectations eased by 0.1%, but remained elevated at 4.6%.
Forbes
2 days ago
- Business
- Forbes
Buy, Sell, Or Hold PepsiCo Stock At $130?
PepsiCo (NASDAQ: PEP) stock has decreased by 12% this year, lagging behind the S&P 500 index, which has increased by 1%. This drop can be linked to poor consumer sentiment and spending, further affected by the company's mixed Q1 results, where revenue slightly exceeded estimates, but earnings fell short. In spite of these challenges, PEP stock, currently valued at around $130, seems appealing at its current valuation. Although we recognize some worries, we feel that the stock's low valuation underlines its attractiveness. This assessment is based on a comparison of PepsiCo's current valuation against its recent operational performance and its historical and present financial status. Our evaluation of PepsiCo across essential metrics—Growth, Profitability, Financial Stability, and Downturn Resilience—suggests that the company presently exhibits weak operational performance and financial health. We will explore these points in detail below. Now, of course, individual stocks are typically more volatile than a portfolio – and in this market, if you're looking for potential gains with less volatility than a single stock, consider the High Quality portfolio, which has surpassed the S&P 500 and generated returns exceeding 91% since its inception. Separately, se – GE Stock To $150? When considering the amount you pay per dollar of sales or profit, PEP stock appears undervalued relative to the broader market. PepsiCo's Revenues have increased slightly in recent years. PepsiCo's profit margins are moderate and comparable to the benchmark index. PepsiCo's balance sheet appears healthy. PEP stock has experienced impacts that were less severe than those faced by the benchmark S&P 500 index during certain recent downturns. Concerned about the effects of a market crash on PEP stock? Our dashboard How Low Can PepsiCo Stock Go In A Market Crash? provides a thorough analysis of the stock's performance during and after previous market crashes. In conclusion, PepsiCo's performance across the parameters discussed above is summarized as follows: PepsiCo stock has exhibited moderate performance across the metrics mentioned, which is reflected in its current low valuation. It is important to note that PEP stock tends to perform well relative to the broader market during downturns, which constitutes a significant advantage for the stock. Overall, we believe PepsiCo's current low valuation makes it a worthy investment. Indeed, we estimate PepsiCo's valuation to be $161, signifying over 20% potential upside from its current price levels. Although it seems there is some upside for PEP stock, the Trefis Reinforced Value (RV) Portfolio has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) and has generated strong returns for investors. What accounts for this? The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks offered a timely method to capitalize on favorable market conditions while minimizing losses when market conditions deteriorate, as detailed in RV Portfolio performance metrics.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Nvidia (NVDA) Powers AI Stocks Higher Ahead of Its Q1 Earnings Report
AI stocks lit up the market on Tuesday as investor excitement built ahead of Nvidia's (NVDA) earnings release, due after the market closes today. While Nvidia saw a 3.2% increase, the real excitement came from companies within its orbit. Power chipmaker Navitas Semiconductor (NVTS) jumped nearly 50% after it announced a deal with Nvidia, while Coreweave (CRWV) and SoundHound AI (SOUN) also posted double-digit gains as investors bet on the strength of Nvidia's expanding ecosystem. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The rally extended beyond AI names. Broader indexes climbed, with the the Nasdaq 100 (NDX) up 2.5%, the the S&P 500 (SPX) rising 2.1%, and the Russell 2000 jumping 2.5%. Markets responded positively to President Trump's decision to delay a major tariff hike on European imports, along with an upbeat U.S. consumer confidence report. Navitas Skyrockets After Nvidia Deal Navitas Semiconductor became the day's standout performer, soaring nearly 50%. The spike followed an already massive 150% gain last Thursday after the company announced it would supply power chips for Nvidia's next-gen AI platforms. Navitas, previously valued at under $1 billion, has now positioned itself as a key piece of Nvidia's hardware puzzle, giving investors a compelling reason to pile in. Coreweave and SoundHound Ride the Nvidia Wave Nvidia's growing AI dominance is sending ripples far beyond the chip sector. Coreweave, a cloud computing company with deep Nvidia ties, jumped over 20%. Since going public in late March, the stock has more than tripled — a surge fueled by its role in running AI workloads using high-performance infrastructure. Meanwhile, SoundHound AI, a company specializing in voice recognition, gained 16% despite Nvidia exiting its stake last quarter. The company is up nearly 400% since Nvidia revealed its investment in early 2024. Just yesterday, Piper Sandler analyst James E. Fish called SoundHound an 'early leader' in conversational AI as they initiated coverage on the stock. They gave it an Overweight rating with a $12 price target, suggesting the shares could still rise about 7.9%. All Eyes on Nvidia's Results Now, all attention turns to Nvidia's Q1 earnings report. Wall Street expects Nvidia's Q1 FY26 earnings per share to surge to $0.73, up from $0.61 a year ago. At the same time, revenue is projected to climb more than 66% to $43.34 billion, according to TipRanks' analyst forecast page. More than just a chipmaker, Nvidia has become the face of the AI rally — and today's numbers could either strengthen that position or raise doubts about its momentum. Investors will focus not only on top- and bottom-line results but also on forward guidance, especially around AI demand, data center expansion, and new hardware partners. Many will also be listening for updates on the rollout of its next-gen Blackwell architecture, expected to play a big role in future revenue. A strong report could supercharge already hot AI names, while a disappointment may cool the frenzy. Is Nvidia Share a Good Buy? According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 32 Buys, four Holds, and one Sell assigned in the last three months. At $164.21, the Nvidia stock price target implies a 21.19% upside potential.
