Why has Hershey stock price dropped so much in the past 6 months?

There are several factors that have contributed to the decline in the Hershey stock price over the past 6 months.

1. Inflation and rising input costs: The sharp increase in inflation has led to higher costs for Hershey, including ingredients, packaging, and transportation. This has put pressure on the company's margins and profitability.

2. Slowdown in demand: Following the easing of COVID-19 pandemic restrictions and subsequent economic reopening, consumers' spending patterns have changed. With more opportunities to dine out and engage in alternative leisure activities, there has been a slowdown in demand for snacks and chocolate products.

3. Supply chain disruptions: The ongoing supply chain disruptions, including raw material shortages and transportation challenges, have affected Hershey's ability to meet production targets and deliver products on time, further impacting its performance.

4. Competition and market dynamics: Hershey faces intense competition in the confectionery industry, not just from other chocolate manufacturers but also from healthier snack options and changing consumer preferences. The market dynamics have shifted towards healthier alternatives, and it has become more challenging for Hershey to maintain its market share.

5. Market sentiment and investor uncertainty: The overall market sentiment has contributed to Hershey's stock decline. Investors have been cautious about investing in consumer goods companies due to the uncertain economic outlook and concerns about inflation and recession.

It's important to note that the stock market performance is influenced by various factors, and the decline in Hershey's stock price is the result of a combination of these factors rather than a single cause.