Top Stocks on Investors' Radar: Kellogg, Nvidia, Costco, Plug Power, and Tesla

Kellogg's stock surged 3.49% after a report of a potential acquisition by Ferrero. NVIDIA's shares rose 1.80% following a reaffirmation from key customer OpenAI. Costco's shares dipped 0.38% despite an 8% YoY increase in net sales. Plug Power's stock skyrocketed 25.35% after announcing the renewal and expansion of a multi-year hydrogen supply agreement. Tesla's shares fell 0.65% due to challenges caused by the surge in copper prices.

Kellogg's Stock Surges on Acquisition Rumors

Kellogg Company's (KLG) stock surged 3.49% on July 2, 2025, following reports of a potential acquisition by Ferrero. The rumors of a $3 billion bid by Ferrero have sent shockwaves through the food industry, offering investors a high-stakes opportunity to bet on a potential consolidation play in a struggling sector. Ferrero is reportedly offering a 100% premium over Kellogg's $1.5 billion market cap, valuing the company at $3 billion [1].

The strategic rationale behind Ferrero's bid includes acquiring Kellogg's global brand portfolio, distribution networks, and R&D pipeline. Kellogg's cereal brands hold 27% U.S. market share and could complement Ferrero's confectionery dominance by expanding into healthier snacks and breakfast segments. Additionally, Kellogg's distribution network could provide Ferrero faster entry into emerging markets [1].

However, the acquisition faces significant risks, including Kellogg's debt-laden status and the declining market for cereal products. Kellogg's enterprise value (EV) sits at 8.9x its 2025E EBITDA of $290 million, far below the 17.5x median for past food industry M&A deals. This discount reflects operational challenges, including declining sales and a $500 million debt load [1].

NVIDIA's Shares Rise on OpenAI Reaffirmation

NVIDIA Corporation's (NVDA) shares rose 1.80% on July 2, 2025, following a reaffirmation from key customer OpenAI. OpenAI's continued support for NVIDIA's GPUs highlights the company's strong position in the artificial intelligence market. This reaffirmation comes as NVIDIA continues to expand its product offerings and partnerships in the AI sector [2].

Costco's Shares Dip Despite Strong Sales Growth

Costco Wholesale Corporation's (COST) shares dipped 0.38% on July 2, 2025, despite reporting an 8% year-over-year (YoY) increase in net sales. The dip in shares may be attributed to the market's focus on the company's valuation and potential growth prospects. Costco's strong sales growth is a positive sign for the company's ability to maintain its market position and attract new customers [2].

Plug Power's Stock Skyrockets on Hydrogen Supply Agreement Renewal

Plug Power Inc. (PLUG) stock skyrocketed 25.35% on July 2, 2025, after announcing the renewal and expansion of a multi-year hydrogen supply agreement. The agreement, which extends through 2030, includes immediate cost reductions and improved network efficiency measures. This agreement secures liquid hydrogen supply for Plug Power's applications business, which currently serves over 275 hydrogen-consuming customer sites [2].

Tesla's Shares Fall on Copper Price Surge

Tesla Inc. (TSLA) shares fell 0.65% on July 2, 2025, due to challenges caused by the surge in copper prices. Copper is a key component in electric vehicles, and the price increase could impact Tesla's production costs and profitability. The company has been proactive in addressing supply chain disruptions, but the ongoing price volatility remains a significant concern [2].

Conclusion

The market's reaction to the acquisition rumors and company news reflects a mix of optimism and caution. Investors are watching closely as the potential acquisition of Kellogg by Ferrero plays out, while other companies like NVIDIA and Plug Power continue to see positive reactions to their respective developments. Meanwhile, companies like Costco and Tesla face challenges that require careful navigation in the current market environment.

References

[1] https://www.ainvest.com/news/ferrero-3-billion-bid-wk-kellogg-strategic-gamble-shrinking-cereal-market-2507/
[2] https://za.investing.com/news/stock-market-news/plug-power-stock-rises-after-extending-hydrogen-supply-agreement-93CH-3783436