Bud Stock Struggles as Anheuser-Busch Deals with Boycott Impact
Bud Stock and Boycott Effects
The ongoing boycott against Anheuser-Busch has severely affected Bud stock. Once the leading beer brand, Bud Light saw its market position deteriorate significantly due to backlash over its marketing campaign featuring a transgender influencer. This resulted in
- a staggering $1.4 billion loss
- double-digit sales drops
and a shift in consumer sentiment.
Q3 Earnings Report Insights
On October 31, Anheuser-Busch revealed its Q3 2024 earnings. Despite beating earnings-per-share estimates at $0.98, revenues fell short of expectations with only 2.1% growth, compared to the predicted 3.4%. Additionally, volumes experienced a significant
decline of 2.4%. U.S. sales figures showed disappointing outcomes as deliveries to wholesalers and retailers also dropped.
Stock Market Reaction
Following the earnings call, BUD stock dropped 7.29%, with a year-to-date decline of 8.87%. While a $2 billion stock buyback and raised guidance offer some optimism, the market's skepticism about future growth remains pronounced.
Prospects for Recovery
Since the boycott commenced on April 1, 2023, BUD stock has not reclaimed its previous heights of $66.73 per share, reflecting a 12.26% drop. However, improvements like a 4.6% increase in revenue per hectoliter point to a potential recovery path. With a significant market share, Anheuser-Busch might present a viable buying opportunity as financial dynamics shift.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.