Can Coronavirus Save Campbell Soup from Oblivion and Irrelevance? — Market Mad House

Strangely, coronavirus could save the Campbell Soup Company (NYSE: CPB) from oblivion and irrelevance.

Campbell’s claims coronavirus is increasing demand for its products. However, Campbell borrowed $300 million in revolving credit to cover COVID-19 related costs, MarketWatch . Moreover, MarketWatch claims Campbell’s has accumulated $1.15 billion worth of commercial paper.

Mr. Market believes that coronavirus is good for Campbell Soup. To explain, Campbell shares were trading at $45.12 on 28 February. Campbell’s share price rose to $53.84 on 17 March 2020; fell to $41.41 on 25 March 2020, and rose to $50.75 on 25 April 2020, and dropped to $50.56 on 29 April 2020.

Is Coronavirus Good for Campbell Soup?

Coronavirus could be good for Campbell Soup because it traps people at home. People stuck at home will be forced to cook their own meals.

Hence, more people will reach for a can of Campbell’s Soup, a carton of Pacific Foods soup, a Swanson frozen dinner, or a jar of Prego pasta sauce. Additionally, people frightened by empty store shelves are more prone to stock up on long-lasting foods such as Campbell’s canned soups.

Additionally, Amazon (NASDAQ: AMZN) and Instacart can easily ship Campbell’s soup to your home. Finally, Campbell’s Soup is a comfort food and more people are seeking comfort in our frightening times.