Sodastream International Ltd (SODA), The Coca-Cola Company (KO): Where Did This Stock-Moving Rumor Come From?

A Lesson Learned

I suppose the moral of the day is to check your references and to check the source of your news. In the end, those who responded quickly to the report were left with very significant losses once the market opened. In fact, with SODA’s gains occurring in the first hour of the day, it’s most likely that a lot of people were hurt from this rumor turned article.

Personally, I think The Coca-Cola Company (NYSE:KO) or PepsiCo, Inc. (NYSE:PEP) would be wise to purchase SodaStream. The company has a business with rapid growth, one that Coca-Cola or PepsiCo, Inc. (NYSE:PEP) do not have, along with a business that is now protected by patents. Therefore, it makes sense that SodaStream would be desirable as an acquisition target. However, at this point, it is not, and there are no confirmed sources to suggest that either The Coca-Cola Company (NYSE:KO) or PepsiCo, Inc. (NYSE:PEP) is looking to acquire the company. At this point, it looks more like wishful thinking.

Brian Nichols is long SodaStream. The Motley Fool recommends Coca-Cola, PepsiCo, and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream. Brian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Where Did This Stock-Moving Rumor Come From? originally appeared on Fool.com is written by Brian Nichols.

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