PepsiCo (PEP) Slid on Concerns Over Slowing U.S. Consumption and Rising Competitive Pressure

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets surged in the second quarter, with the S&P 500 Total Return Index rising 10.94% and the Russell 1000 Growth Index returning 17.84%. The fund also surged in the quarter and returned 15.01%. Continued enthusiasm for artificial intelligence, better-than-expected earnings in several large-cap growth sectors, and improving macroeconomic conditions lifted the markets in the quarter. Growth-focused stocks took the lead once more, with the strongest performance coming from sectors like technology, communication services, and certain areas of consumer discretionary. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as PepsiCo, Inc. (NASDAQ:PEP). PepsiCo, Inc. (NASDAQ:PEP) is an American multinational company that manufactures, markets, and distributes various beverages and convenient foods. The one-month return of PepsiCo, Inc. (NASDAQ:PEP) was 3.35%, and its shares lost 19.09% of their value over the last 52 weeks. On August 4, 2025, PepsiCo, Inc. (NASDAQ:PEP) stock closed at $139.56 per share, with a market capitalization of $191.069 billion.

RiverPark Large Growth Fund stated the following regarding PepsiCo, Inc. (NASDAQ:PEP) in its second quarter 2025 investor letter:

“PepsiCo, Inc. (NASDAQ:PEP): PEP was a modest detractor in Q2, as soft beverage volume and margin pressure led to a weaker-than-expected results. The company reported revenue of $17.9 billion, down 1.8% year-over-year, as FX headwinds and promotional activity in North America impacted performance. EPS also declined year-over-year, and guidance remained cautious given ongoing input cost inflation.

Despite solid international performance, investor sentiment was dampened by concerns over slowing U.S. consumption and rising competitive intensity. Analysts revised margin expectations slightly lower for the back half of the year, and the stock trailed other staples during the quarter.

We continue to view PepsiCo as a high-quality, defensive compounder with strong global brands and consistent cash generation. With a growing dividend, geographic diversification, and strong balance sheet, we believe PepsiCo remains a great investment.”

In another article, we covered PepsiCo, Inc. (NASDAQ:PEP) and shared the list of best major stocks to invest in. ClearBridge Dividend Strategy exited its position in PepsiCo, Inc. (NASDAQ:PEP) in Q2 2025 due to a lack of strategy to address the decline in snacks. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.