Connect with us

Crypto World

McDonald’s and Coca-Cola Gain as Investors Shift to Defensive Stocks

Published

on

Netflix And Intel Earnings Preview

Editor’s note: As market attention remains heavily concentrated on AI and high-growth technology stocks, this announcement highlights a quieter but notable shift toward defensive, income-generating equities. Drawing on recent market performance, the release points to McDonald’s and Coca-Cola as examples of established companies that have outperformed broader indices during recent volatility. With both firms reporting earnings this week, the commentary frames dividends and consumer resilience as key factors for investors, particularly in the UAE, who are increasingly focused on global diversification and portfolio balance amid uncertain macro conditions.

Key points

  • McDonald’s shares are up 8% and Coca-Cola shares have gained 14% while the Nasdaq has turned negative.
  • Both companies are positioned as defensive holdings supported by strong brands and consistent demand.
  • Upcoming earnings reports are expected to provide insight into consumer and discretionary spending trends.
  • Dividend growth remains a central theme, with decades-long records of consecutive increases.

Why this matters

The focus on dividend-paying, defensive stocks underscores a broader reassessment of risk as market volatility persists. For investors and portfolio builders, particularly in the UAE, the performance of established consumer brands offers a counterbalance to exposure in higher-growth and more volatile sectors such as AI and crypto. Earnings results from companies with global and regional footprints can also serve as practical indicators of consumer health, helping market participants gauge resilience across different economic environments.

What to watch next

  • McDonald’s and Coca-Cola earnings results and management commentary this week.
  • Updates on margins, pricing strategies, and consumer demand trends.
  • Market reaction to dividend sustainability and forward guidance.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Abu Dhabi, United Arab Emirates – February 09, 2026: While global markets remain heavily focused on artificial intelligence and technology stocks, this enthusiasm has shifted attention away from steady performers that continue to offer reliability during uncertain times.
After a strong start to the year, the Nasdaq has turned negative, yet McDonald’s (NYSE: MCD) shares have risen 8% and Coca-Cola (NYSE: KO) has gained 14%. Both companies have demonstrated resilience across multiple market cycles, supported by strong brand power and consistent demand.

Netflix And Intel Earnings Preview
Zavier Wong, Market Analyst at eToro

“In volatile markets, dividend-paying stocks offer something precious: stability,” said Zavier Wong, Market Analyst at eToro. “These are mature, financially sound businesses that continue to reward shareholders even when markets pull back.”

For investors in the UAE, where diversification across global markets is a growing priority, defensive and income-generating stocks deserve renewed attention. While recent investor enthusiasm has largely centred on high-growth sectors such as AI and crypto, reliable dividend payers continue to play an important role in building balanced portfolios.

Both McDonald’s and Coca-Cola report earnings this week, offering valuable insight into the health of the consumer and discretionary spending trends.

Advertisement

For McDonald’s, investor focus will be on its ability to maintain margins while driving customer traffic, particularly as lower-income consumers scale back spending. Value-focused offerings have been key to sustaining demand. The company also maintains a significant presence across the Middle East, operating more than 2,000 locations in the region.

Coca-Cola, which controls around 45% of the global carbonated soft drink market and owns five of the world’s top ten beverage brands, including Sprite and Fanta, is expected to demonstrate continued resilience. Fourth-quarter revenue is forecast to grow by 5%, with margins remaining stable.

Both companies continue to offer defensive qualities in today’s volatile market environment. If earnings results confirm resilient demand, it reinforces the case for holding these stocks as stabilising positions. McDonald’s has increased its dividend for nearly 50 consecutive years, while Coca-Cola has done so for more than 60.

“They may not be the flashiest names in the market,” Wong added, “but in turbulent times, they’re the kind of stocks that help keep portfolios steady. Sometimes, boring is brilliant.”

About eToro

eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.

Advertisement

Disclaimers:

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

eToro is a group of companies that are authorised and regulated in their respective jurisdictions. The regulatory authorities overseeing eToro include:

  • The Financial Conduct Authority (FCA) in the UK
  • The Cyprus Securities and Exchange Commission (CySEC) in Cyprus
  • The Australian Securities and Investments Commission (ASIC) in Australia
  • The Financial Services Authority (FSA) in the Seychelles
  • The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the UAE
  • The Monetary Authority of Singapore (MAS) in Singapore

This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

Advertisement

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Crypto World

Bitcoin, Ethereum, Crypto News & Price Indexes

Published

on

Bitcoin, Ethereum, Crypto News & Price Indexes

Solana’s SOL (SOL) has dropped 38% over the last 30 days, falling to a two-year low of $67 on Friday. Multiple analysts believe that the downside is not over for the seventh-placed cryptocurrency, with downward targets extending as low as $30.

Key takeaways:

  • Solana’s head-and-shoulders pattern targets a SOL price of $50 or lower.

  • MVRV bands point to a potential bottom, but support at $75 must hold.

SOL/USD weekly chart. Source: Coitelegraph/TradingView

Solana targets $42 after bearish confirmation

SOL price has already lost over 72% of its value since a cycle top of around $295 in January 2025. In doing so, its price confirmed a head-and-shoulders (H&S) pattern on multiple time frames.

Related: Pump.fun moves deeper into trading infrastructure with Vyper acquisition

Crypto analyst Bitcoinsensus shared a chart showing SOL validating a H&S pattern, hinting at more downside ahead.

Advertisement

“Solana has confirmed a breakdown from this macro Head & Shoulders pattern,” Bitcoinsensus said in a Monday post on X, adding:

“​​The target could be as low as $50 per $SOL.”

SOL/USD weekly chart. Source: X/Bitcoinsensus

“This is a classic head and shoulders pattern with a measured move to $45,” analyst Nextiscrypto said about SOL’s two-week chart. But other analysts said the price can go even lower.

Pseudonymous analyst “Shitpoastin” said Solana’s price has also formed a “massive head and shoulders” pattern on the monthly chart over two years, “with nothing but air until $30.”

Source: X/Shitpoastin

The two-day candle chart, meanwhile, shows that SOL price had broken below the H&S neckline at $120 on Jan. 30.

SOL/USD two-day chart. Source: Cointelegraph/TradingView

The measured target of the H&S pattern, calculated by adding the head’s height from the breakdown point, is $57, representing a 32% drop from the current level.

Solana’s MVRV bands give hope for a bottom at $75

SOL’s price crash last week was stopped by support from the lowest boundary of its MVRV extreme deviation pricing bands, currently at $75.

These bands show when SOL is below or above the average price at which traders last moved their coins.

Advertisement
Solana MVRV extreme deviation pricing bands. Source: Glassnode

Historically, SOL prices drop to near or even below the lowest MVRV band before a bottom is reached.

That includes the March 2022 bounce, when the SOL price rose 87% within three weeks to $140 after testing the lowest MVRV deviation band around $75. A similar rebound occurred earlier in December 2020.

Solana’s association with the FTX crash in November 2022, however, saw a significant deviation below this band, with the price dropping another 70% and bottoming around $7 in December that year.

Therefore, SOL’s drop below $75 spark the next phase of the correction as seen in 2022, likely aligning with the H&S target.