--- title: "Nestle Shares Plunge Most Since Dot-Com Bust As Weak Volume Shatters High Hopes Of Turnaround" type: "News" locale: "en" url: "https://longbridge.com/en/news/293609941.md" description: "Nestlé shares plummeted to their lowest level since the dot-com bust as weak North American sales volumes undermined confidence in CEO Philipp Navratil's turnaround efforts. Despite a better-than-expected 3.7% organic sales rise, real internal growth in North America fell 0.6%, weighed down by an infant formula recall and geopolitical conflicts. The stock drop reflects stalled hopes for a rebound, though the company maintains its margin guidance and announced a joint venture for its water business." datetime: "2026-07-23T11:45:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293609941.md) - [en](https://longbridge.com/en/news/293609941.md) - [zh-HK](https://longbridge.com/zh-HK/news/293609941.md) generator: "portal-rs" --- # Nestle Shares Plunge Most Since Dot-Com Bust As Weak Volume Shatters High Hopes Of Turnaround Nestlé shares in Switzerland tumbled the most in 24 years after North American sales volumes unexpectedly contracted, undercutting investor confidence in CEO Philipp Navratil's turnaround efforts. Organic sales rose a better-than-expected 3.7% in the second quarter, but real internal growth in North America fell 0.6%, while an infant formula recall and the Gulf conflict weighed on operations. "**Given the rally, we don't think the real internal growth print is quite good enough and expect some profit taking**," Barclays analyst Warren Ackerman said in a note. Ackerman said, "**NESN's turnaround is a work in progress, and expectations were too elevated, which explains the steepest fall in the shares since 2020**." If the 7.2% decline holds through the European close, it would mark Nestlé's steepest one-day loss since July 22, 2002, according to Bloomberg data. Shares peaked around 127 euros in late 2021 and have since fallen 44% into a 4.5-year bear market. Any upside momentum seen this year has stalled - for now - as hopes of a turnaround dim. Ackerman added, "**Coffee and Petcare remained strong, but were not sufficient to offset weakness elsewhere**." Here's what other institutional desks are saying (courtsey of Bloomberg): **Citi (neutral)** - *Cedric Besnard doesn't expect changes to consensus expectations on the back of the print "as the end of the sequential H2 margin acceleration narrative is actually aligned with current expectations"* - *"Especially after a relatively strong share price performance recently, we would not expect a re-rating," Besnard writes* **Vontobel (buy)** - *"Nestle is showing clear execution on the key priorities, marking a meaningful milestone in this new strategic roadmap," Jean-Philippe Bertschy writes* - *Adds accelerating RIG, cost savings and improving cash generation are particularly reassuring given higher advertising and marketing spend* Nestlé also agreed to sell half of its Perrier and S.Pellegrino water business to Platinum Equity for 3 billion euros in cash, creating a 50-50 venture valued at 4.9 billion euros. The **deal advances Navratil's plan to shed underperforming assets and refocus the company heavily on coffee, pet care, nutrition, food and snacks**. **Navratil is pulling every lever to stabilize the sinking ship**, and the strategy appears to be working. As CFO Anna Manz told investors on an earnings call earlier today: *"You see us manage, as we have in the first half, any elements that come our way quite consistently, and that's why we're maintaining our margin guidance today."* ### Related Stocks - [NSRGY.US](https://longbridge.com/en/quote/NSRGY.US.md) - [BCS.US](https://longbridge.com/en/quote/BCS.US.md) - [C.US](https://longbridge.com/en/quote/C.US.md) - [NSRGF.US](https://longbridge.com/en/quote/NSRGF.US.md) - [BARC.UK](https://longbridge.com/en/quote/BARC.UK.md) - [C-R.US](https://longbridge.com/en/quote/C-R.US.md) ## Related News & Research - [FOCUS-Nestle looks to develop new products to serve users of weight-loss drugs](https://longbridge.com/en/news/296061355.md) - [Nestle Turns to AI as Ozempic Changes How America Eats](https://longbridge.com/en/news/296272381.md) - [THEO is Now Live on Hydrex — Autheo’s Internet Operating System Token Begins Trading](https://longbridge.com/en/news/296511616.md) - [Homrich & Berg says Shiller CAPE nears dot-com highs as stocks lag earnings](https://longbridge.com/en/news/296127729.md) - [Hormuz shipping traffic shows no uptick in US-Iran geopolitical stalemate, according to data](https://longbridge.com/en/news/296425786.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**