We recently published our list of the 10 Worst Dow Stocks To Buy and Coca-Cola (NYSE: KO ) ranks 7th on this list.
Yahoo Finance reported on November 5 that the Dow Jones Industrial Average tumbled 3.4%, or more than 1,800 points, while the S&P 500 fell 4.4% and the Nasdaq Composite sank 5.5% into correction territory. Chip stocks took the brunt of the damage, as the leading AI chipmaker fell 9% to pace Dow decliners and another chip designer plunged 17%, the outlet reported.
The slide erased the gains from a day earlier, when the Dow had jumped nearly 1,600 points after Democrats won control of both chambers of Congress, Yahoo Finance wrote on November 4. Even so, the blue-chip index finished Thursday just 1.9% below its record closing high of 54,349 from early August, according to Yahoo Finance .
The Dow's Safe-Haven Run Cracks
For most of the week the Dow had looked like the sheltered corner of the market. Yahoo Finance reported on November 2 that the Dow edged up 0.4% while the Nasdaq dropped roughly 1% as investors rotated out of technology names and into consumer cyclical and financial services shares. One household consumer brand has divided opinion lately, and we covered why a well-known TV host is staying away from the sneaker maker after losing money on it .
On Thursday that cushion gave way, as the focus turned to what a Democratic Congress could mean for the AI buildout, and for the data centers driving it in particular, according to Yahoo Finance . Data center power and infrastructure stocks fell by double digits, and the Nasdaq 100 was recently more than 10% below its October closing high.
The reversal was fast. Shay Boloor, chief market strategist at an equity research firm, pointed out that the VIX volatility index posted its biggest one-day jump in more than two years, Yahoo Finance reported on November 5. It took the Nasdaq just six minutes to erase its entire post-election rally.
A Jobs Report Steadies the Tape
Friday brought a partial rebound. Yahoo Finance reported on November 6 that the U.S. added 165,000 jobs in October, and the Nasdaq gained 1.9% while the S&P 500 rose 1% and the Dow added 0.1%. You might also be interested in reading our piece on why a billionaire money manager and a TV host both still like the iPhone maker .
The stronger jobs data lifted Treasury yields and kept Federal Reserve policy at the center of market attention, Reuters reported on November 6, as the price-weighted index of 30 major U.S. companies held roughly flat.
Coca-Cola's average upside potential, based on analysts' average price target, is 3%. It has a short interest of 1.16% and had 90 hedge fund holders as of Q2 2026.
Coca-Cola is selling more drinks, not just charging more for them. Global unit case volume grew 5% in the third quarter, while pricing and mix played a small role in the 7% increase in organic revenue. The company also gained value share in nonalcoholic ready-to-drink beverages, a sign that shoppers are choosing its brands over rivals.
Profit followed the volume. Comparable earnings per share grew 11%, and the operating margin widened to 33.4% from 32.0% a year earlier. Growth came across brands, with Coca-Cola Zero Sugar volume up 16% and the flagship Trademark Coca-Cola brand also growing, led by India, China, Mexico and Brazil. Unit case volume also rose in Europe, Middle East and Africa and in Latin America, where it grew faster than the company average.
Management responded by raising its full-year guidance. Chief Executive Henrique Braun said the quarter shows the system's sustained momentum, giving the company confidence in its updated outlook. Year-to-date free cash flow reached $11.4 billion, which funds both marketing investment and shareholder payouts. Music partnerships, including festival activations across Europe, also helped drive volume growth in that region.
Check out our analysis on Coca-Cola (KO) here: Can Coca-Cola (KO) Stock Support 28 Times Earnings?
While we acknowledge the risk and potential of KO as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than KO that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock .
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This article is originally published at Insider Monkey .
