Major food manufacturers, including JM Smucker, Mondelez International, Hershey, and PepsiCo, have faced declines in stock performance over the past year, raising concerns about the long-term viability of their business models.

Inflation remains a key challenge, with rising prices straining consumer budgets and leading to a sharp drop in consumer confidence, according to data from the Conference Board.

Meanwhile, Wall Street analysts are increasingly wary of trade wars and their potential impact on global supply chains.

One of the biggest concerns for packaged food makers is the rise of weight-loss drugs such as GLP-1 agonists, according to a report by Barron’s.

As more consumers turn to these medications, the traditional “snackification” of eating habits may be under threat.

Yet, companies such as McCormick have managed to buck the trend, with the spice maker’s stock up 20% over the past year.

“We do not compete for calories; we flavour them,” McCormick’s CEO noted in a recent earnings report, highlighting the strength of seasonings, condiments, and hot sauces.

Trends and buzzwords: what analysts took away from CAGNY

Analysts at JPM observed that the snack sector has been in a “deep slump for over a year.”

General Mills, for example, barely mentioned its snack brands, while Conagra was more vocal about the category at this year’s Consumer Analysts Group of New York (CAGNY) held in Florida.

The company noted that snacking occasions are increasing, particularly among children and teenagers, but that consumer preferences are shifting toward meat snacks and nuts rather than traditional chips and cookies.

Innovation in an era of changing consumer needs

According to the report, innovation remains a crucial growth driver, though it took a backseat during the pandemic due to supply chain disruptions.

Now, companies are reintroducing new products, some of which stretch conventional food categories.

JM Smucker, for instance, unveiled Milk-Bone Peanut Buttery Bites, a dog treat made with real Jif peanut butter, describing it as the “first dog treat featuring a human food brand.”

Meanwhile, Conagra is adapting to the rise of weight-loss drugs by labeling certain Healthy Choice meals as “GLP-1 friendly,” catering to consumers seeking portion-controlled options.

However, not all innovations inspire confidence—its new frozen Vlasic Big Crunch! Crispy Fried Pickles have been met with skepticism.

The debate over “peak protein” and food branding

Analysts at Bank of America have raised concerns about “peak protein,” referring not just to market saturation but also the increasingly bold marketing of protein content on food packaging.

General Mills, for example, has emphasized high protein content on its Progresso soup cans and Strawberry Cheerios Protein boxes, often overshadowing the actual brand names.

WK Kellogg, following its 2023 split from Kellanova, is also seeking to diversify beyond cereal, discussing potential acquisitions to fuel growth.

However, this raises questions about whether the company is staying true to its core identity, as its 2023 investor presentation emphasized that “everything we do will be in service of cereal.”

Can Big Food regain its footing? Analysts weigh in

The challenges facing packaged food companies have led to increased scrutiny of their financial performance.

Wall Street has traditionally viewed consumer staples as a stable investment, offering consistent revenue growth and dividends.

However, analysts warn that companies such as General Mills and Kraft Heinz may struggle to meet growth expectations in the near term.

Bank of America has warned that General Mills could underperform its “algorithmic” growth targets through 2025, while Kraft Heinz may not see meaningful earnings growth until 2027.

Hershey, grappling with soaring cocoa prices, may only return to “on-algorithm” growth by next year.

Oppenheimer has summed up the industry’s outlook by citing inflation, pricing constraints, obesity drugs, tariff risks, and competition from private-label brands as significant hurdles.

“A difficult backdrop is likely to continue,” it says.

Investors should take note as speculation grows about a US market shift toward value stocks, including consumer staples.

The challenge is that the cheaper options lack growth potential, while those with growth prospects come at a premium.

General Mills, trading at 14 times earnings, is expected to see a slight earnings decline for its fiscal year ending in May, while McCormick, with mid-single-digit growth, commands a steep 25 times earnings.

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President Donald Trump’s meeting with Ukrainian President Volodymyr Zelenskyy on Friday quickly turned tense, as the two leaders clashed over the prospects of a US-brokered peace deal with Russia.

Zelenskyy cast doubt on the likelihood of a lasting agreement, prompting an angry response from Trump and Vice President JD Vance, who accused the Ukrainian leader of being ungrateful and obstructing negotiations.

“It’s going to be very hard to do business like this,” Trump told Zelenskyy, suggesting that Ukraine lacked leverage without US support.

“You’ve got to be more thankful, because let me tell you, you don’t have the cards. With us, you have the cards, but without us, you don’t have any cards.”

He went further, warning, “You’re gambling with World War III, and what you’re doing is very disrespectful to the country.”

Zelenskyy vs Trump and Vance at the Oval Office

The heated exchange came as both the leaders were meeting to sign an agreement allowing the US to unlock future revenue from Ukraine’s natural resources.

Trump had presented the deal as a major commitment to Kyiv, arguing that it would pave the way for peace.

However, it failed to offer the explicit security guarantees Zelenskyy had sought, focusing instead on economic collaboration.

Zelenskyy pushed back, insisting that Russian President Vladimir Putin had repeatedly violated past ceasefire agreements and that Ukraine could not settle for a simple ceasefire.

“Putin will never stop and will go further and further,” he warned, arguing that the Russian leader was determined to destroy Ukraine.

The conversation became even more contentious when Vance criticized Zelenskyy’s tone.

“Do you think that it’s respectful to come to the Oval Office of the United States of America and attack the administration that’s trying to prevent the destruction of your country?” the vice president asked.

Trump then accused Zelenskyy of harboring “tremendous hatred” for Putin, suggesting that his emotions were preventing a resolution.

Tensions escalated further when Zelenskyy suggested that Trump, protected by an ocean, did not fully grasp the immediate threat Ukraine faced.

Trump shot back, “You’re in no position to dictate what we’re going to feel. We’re going to feel very good and very strong. You’re right now not in a very good position right now.”

Vance then pressed Zelenskyy to acknowledge US support, pointedly asking, “Have you said thank you once?”

He also added: “Accept that there are disagreements, and let’s go litigate those disagreements rather than trying to fight it out in the American media when you’re wrong.”

Trump has portrayed the natural resources deal as a way to reimburse American taxpayers while strengthening economic ties with Ukraine. He has also continued to push for a ceasefire, arguing that economic incentives would be enough to deter Russian aggression.

“Once we make the agreement, that’s going to be 95% of it. It’s not going to go back to fighting,” Trump said, expressing confidence in his ability to negotiate with Putin.

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US stocks grappled with weakness this week after President Donald Trump confirmed tariffs on Canada and Mexico.

Trump had proposed a 25% levy on both countries at the start of February.

While the allies had secured a one-month delay to discuss and potentially reach a more permanent solution at the time, the negotiations have seemingly failed as the raised tariffs are now scheduled to go live on March 4.

The US President also confirmed in its recent post on Truth Social that rival China will face an additional 10% tariff from next week as well.

Cramer says cybersecurity is insulated from Trump tariffs

Much of the weakness in the benchmark S&P 500 index this week was related to turmoil in the US tech stocks since they are the most at risk from the new tariffs under the Trump administration.

Why? Because the majority of them rely significantly on Beijing for a component of their supply chains.

Still, there’s one sub-sector of technology that famed investor Jim Cramer sees as insulated from Trump tariffs – and that’s cybersecurity software.

Last night on “Mad Money”, the former hedge fund manager dubbed cybersecurity stocks as the safest picks in the current macro environment as they’re not really exposed to tariffs.

A name within that space that he particularly recommends owning is Crowdstrike Holdings Inc (NASDAQ: CRWD).

Why is Cramer bullish on Crowdstrike stock?

Jim Cramer remains bullish on cybersecurity stocks amidst rising tariffs also because online threat protection is an absolute need of the hour.

He was taken aback from Crowdstrike’s recent annual report that “talked about North Koreans coming into companies, posing as employees, and taking data.”

In the midst of such a big threat, he’s convinced, the demand for cybersecurity solutions, like the ones CRWD offers, could increase exponentially over time, according to the Mad Money host.

“Cyber is the one area that they can’t seem to tax, because there’s nothing to tax,” he said this week on CNBC’s “Squawk on the Street”.

Crowdstrike continues to attract strong demand

On Friday, the company based out of Austin, Texas, was named a leader in managed detection and response by an independent firm.

Cramer is bullish on CRWD shares also for the strength of its financials. In November, the Nasdaq listed firm cited solid demand as it raised its forecast for the full year.

Crowdstrike now sees its revenue falling between $3.92 billion and $3.93 billion on the back of “incredible success with our customer commitment packages.”

Wall Street seems to agree with Jim Cramer on CRWD stock.

The consensus rating on the cybersecurity technology company currently sits at “overweight” with upside to $412 on average that indicates potential for about an 8.0% gain from current levels. 

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SoundHound AI Inc (NASDAQ: SOUN) earnings this morning reminded investors that it’s more than just an AI firm that once received a vote of confidence from Nvidia Corp (NASDAQ: NVDA).

On Friday, the company based out of Santa Clara, CA said its revenue more than doubled in the fourth quarter, leading to a 20% increase in its stock price.

SOUN also raised its guidance for the full year today, suggesting the future remains bright with or without the Nvidia investment.

For the year, SoundHound stock is still down close to 50%.

Why Nvidia investment wasn’t significant for SOUN anymore

SoundHound shares tanked nearly 30% on February 14 following Nvidia’s announcement that it’s no longer invested in the voice AI platform.

However, the price action may have been an overreaction on the investors’ part.

That’s because NVDA investment in SOUN was merely a financial one.

In the fourth quarter of 2023, when the AI darling first announced a stake in SoundHound, it was meaningful for the latter since it brought attention and credibility to its stock.  

But it didn’t eventually result in substantial direct support or partnership with Nvidia, which means operationally, the investment hardly bore any benefit for SoundHound.

The Nasdaq-listed firm continues to do well without Nvidia, and the demand for its products remains just as strong, indicating that the NVDA-driven sell-off in SoundHound stock may be an opportunity to buy.

SoundHound continues to attract solid demand from QSR

SoundHound now sees its revenue falling between $157 million and $177 million in 2025.

Its previous guidance was for $175 million at the top end of the range.

The voice AI platform continues to attract solid demand from quick-service restaurants.

It has even teamed up with a few notable names recently, including Peet’s Coffee and Burger King UK.

“The pace of adoption of our customer service in restaurants is increasing,” the company’s chief executive Keyvan Mohajer told investors on the earnings call, adding SOUN is “already the largest provider with dozens of prominent brands and well over 10,000 locations.”

SoundHound stock does not, however, pay a dividend at writing.

What else could drive SoundHound stock price up in 2025?

SoundHound sees the DeepSeek development as a tailwind since an increase in AI models could lower its costs.

The artificial intelligence company is committed to bringing its technology “on the edge”, which could help unlock significant further upside in its share price as well.  

SOUN chief executive Keyvan Mohajer is also bullish on the company’s in-vehicle voice assistant that “delivers new leads, and creates a monetizable moment for SoundHound with revenue sharing opportunities for carmakers.”

Despite recent turmoil, Wall Street remains bullish on SoundHound shares.

The consensus rating currently sits at “overweight” with analysts calling for upside to over $15 on average in the AI stock.

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