- Anheuser-Busch InBev's stock (BUD) faces turbulence, dropping 0.8% due to fears of a Bud Light boycott.
- The potential boycott stems from a marketing campaign featuring transgender actress and social media personality, Dylan Mulvaney.
- Although there's some uncertainty, analysts' estimates remain relatively stable, and rivals such as Molson Coors Beverage are seeing sales volumes rise in the wake of the controversy.
Come chill and let's ride the waves of the brewing culture wars. Picture this: Anheuser-Busch InBev, a titan in the beer industry, is feeling the weight of its decisions. Like a surfer riding a gnarly wave, they're trying to keep their balance as the stock market tide shifts beneath them. The numbers, as they say, speak volumes, and for ABI, those volumes are taking a bit of a dip.
Their stock, known to the Wall Street crowd as BUD, took a minor nosedive, dropping about 0.8% to a cool $60.97 this past Friday. Investors, you see, are biting their nails over a potential boycott of ABI's products, especially their golden child, Bud Light. If things continue in this way, it's going to be the sixth losing streak day for the stock, the worst they've had since that gnarly wipeout back in February.
Now, why the sudden storm, you ask? Well, earlier this spring, Bud Light got chummy with transgender actress and social media sensation, Dylan Mulvaney, for a marketing campaign. This sparked a wave of conservative voices calling for a boycott of the beer. Initially, the company’s stock wasn't fazed, even getting a little boost after ABI reported some beefy earnings. But now, the stock has lost those gains and then some, as the boycott fears keep on rolling.
The first quarter was a good ride for ABI, but that didn’t account for the current controversy. Mulvaney dropped her video on April 1, just as the second quarter was kicking off. The shares are still up for the year, but they hit their peak on March 31, right before the video drop. Now, investors are bracing for the company to maybe dial back its outlook, with Bud Light sales volumes hitting some rough waters.
So, where does this leave ABI? Even though they're a global company with a wide range of products, the controversy seems to be spreading to some of their other brands. But hey, it's not all doom and gloom. The analysts haven’t massively changed their estimates yet, and while the Bud Light boycott might not be the conservative win some were hoping for, rivals like Molson Coors Beverage are catching a good wave, growing their sales volumes and flaunting their support for LGBTQ+ causes.
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