Odd Lots · Thursday, October 1, 2026
The market's focus has shifted dramatically towards AI, impacting traditional consumer stocks like Nike and McDonald's, which have seen significant stock price declines. Luke Kawa explains this shift by noting that while nominal growth is accelerating, these consumer companies lack exceptional top-line growth compared to AI beneficiaries.
“I looked up a chart of McDonald's and... That was doing really well up until, and then it peaked on March 3rd and then it's been straight down.”
“That was $ 180 stock in 2021. It's 35 now. I mean, there's just like I mean, granted, it had a huge run up in 2021, too. But like any like just sort of like regular business that is they're just doing terrible.”
“So I think that was a stand-in for disruption fears. And as software has come back, you've seen kind of multiples there deflate. So I think it is, we got to find someone to punish. Maybe it's just because everyone's very invested, but when AI is doing well, you got to find someone to punish.”