Cramer: Coca-Cola Is The Conservative Way To Play 2 Huge Trends

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The Coca-Cola Co KO came out with better than expected first-quarter earnings on back of the price hike it did on its products.

CNBC’s Jim Cramer recently weighed in on the results and discussed the impact of Coke’s deal with Monster Beverage Corp MNST.

High ROI In Social Media

Cramer is impressed by how Coca-Cola has diverted a lot of its advertising budget to social media instead of conventional mediums, saying, “I like the fact that they are using social media, which is a much cheaper bang for the buck. I think we're going to be hearing more and more about how, now they are up to the 20 percent of their advertising in social media and they just get more sales from using social media.”

The Monster Deal

“Another thing that I like that I think people have to keep track of: the Monster beverage deal will close this quarter,” Cramer said. “That means that’s that distribution merging -- that is going to boost revenues. Do not forget, there’s lot of hope here on the cold-brewed Keurig, which they have a big investment in.”

Conservative Way

“Maybe Coca-Cola is the conservative way to play two huge trends,” Cramer said. “Again this is interesting. Monster, they took out some of the natural juice in Monster last quarter and sales were boosted by that. So, there's clearly some sort of bizarre backlash between people who would actually prefer not to get sick from what they eat and people who seem to be neutral on the issue.”

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