Why is pep down over the course of a year

PepsiCo's stock price has experienced a decline of 1.55% on June 5, 2025, which, when combined with other fluctuations, results in a overall decrease of 0.98% over the past year. Several factors may have contributed to this decline:

1. Legal Victories and Market Reaction: The dismissal of a defamation lawsuit against PepsiCo may have had a positive impact on the company's reputation, potentially leading to increased investor confidence and a positive market reaction. Conversely, if the lawsuit's allegations of wrongdoing were perceived as damaging to the company's image, the dismissal might not have had a significant positive effect, especially if the allegations were severe or related to core business practices.
2. Institutional Investor Activity: There have been changes in holdings by various institutional investors. For example, Teamwork Financial Advisors LLC purchased a new stake, while Rhumbline Advisers reduced its position. Such shifts in ownership can influence investor sentiment and market perception of the company's prospects.
3. Market Valuation and Performance: PepsiCo's stock has been traded at a discount compared to its peers, which may have affected investor perception and contributed to the decline in its stock price. Additionally, the company's recent performance, including challenges in its North American operations and product recalls, may have further impacted investor confidence.
4. Macroeconomic Factors: Broader economic indicators, such as inflation, can influence stock prices. In May 2025, Kenya's inflation stood at 3.8% year-on-year, which might not directly affect PepsiCo, but macroeconomic conditions can impact consumer spending and, subsequently, corporate performance and stock prices.

In conclusion, PepsiCo's stock decline over the past year is likely a result of a combination of legal victories, institutional investor actions, market valuations, and macroeconomic factors. The company's challenges in its North American operations and product recalls also contribute to the decline.