DEO - Diageo's Glass Is Still Half Empty
2024-07-31 05:33:44 ET
Summary
- Diageo's business model has not held up, leading to a 35% slow-motion crash in stock since April 2023.
- The company's heavy diversification in spirits and hard drinks brands across various geographies provides a good perspective on the industry.
- Despite a period of rising prices and increasing revenues, volume sales began to stagnate, leading to a justified downfall in stock value.
Although Diageo's ( DEO ) business model is perceived to be quite solid, there is not a clear sign of recovery yet for the company. DEO stock was once guarded by strong brands and a huge marketing budget, but this has not been enough to protect the stock from having a 35% slow-motion crash since April 2023. In my opinion, this downfall is justified, and because growth is not even in sight again, I can't give more than a hold rating for now....
Diageo's Glass Is Still Half Empty