Amid controversy and declining stock prices related to an Instagram ad campaign for Bud Light featuring transgender activist Dylan Mulvaney, Bill Gates’s Foundation Trust has bought 1.7 million shares of Anheuser-Busch InBev (NYSE: BUD).
Due to the recent purchase worth $96.59 million by this high-profile investor, the parent company of the now distressed but formerly top-selling beer manufacturer in the United States, which had to lay off nearly 2% of its workers due to the fallout, could witness the beginning of a recovery.
Indeed, the foundation of Bill Gates, who is worth $111.2 billion, acquired the shares in June after Anheuser-Busch published its decreased earnings report, adding the beverage producer to its portfolio that also includes Walmart (NYSE: WMT), Microsoft (NASDAQ: MSFT), and Deere & Company (NYSE: DE).
BUD stock analysis
As things stand, the current price of BUD stock is $56.40, having declined 1.16% in the last 24 hours but recording a marginal increase of 0.95% across the previous five days, adding up to the 0.12% gain on its monthly chart, according to the latest information retrieved on September 12.
From the technical analysis (TA) point of view, the support zone for BUD stock rests between $44.51 and $55.55, while the shares are facing resistance in an area between $58.28 and $67.09, which they need to break out of to provide strength for the recent modest increase.
Earlier this year, Anheuser-Busch experienced a sharp decline in US-listed shares and dropped from its position as the top-selling brand in the US on an annual basis after dominating the charts for more than two decades, as Finbold reported on August 25.
Meanwhile, the concerned distributors for the embattled brewer stopped expecting the recovery of Bud Light sales, which had dropped over 25% since the year’s turn, and have given up on reclaiming the dissatisfied customers that had made their choice, instead focusing on attracting new consumers.
At the same time, the wave of boycotts and the ensuing sell-off triggered by the controversial marketing campaign have given an opportunity to other beverage makers to profit from the Bud Light fiasco and rise up in the shifting landscape, including Chicago-based Molson Coors (NYSE: TAP).
All things considered, the Bill Gates Foundation trust buying such a massive amount in BUD stock could help Anheuser-Busch reclaim some of its former glory.
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