Sales of Bud Light owner Anheuser-Busch InBev (NYSE: BUD) continued to tumble for the sixth straight week since the company’s social media promotion involving the influencer Dylan Mulvaney.
In the week that ended on May 13, the sales were down 24.6% year-over-year, according to industry data by Bump Williams Consulting and Nielson IQ research. The sales drop and other headwinds faced by Anheuser were reflected in the company’s stock price, which tanked nearly 10% in the past month.
Further, industry experts said that the adverse effects were even more apparent in Anheuser’s other brands, including Budweiser and Michelob Ultra. The latter, which recorded over $3.3 billion in sales in 2022, saw a steep drop of 2.9% in the last week compared to a year ago.
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Similarly, Budweiser’s sales stood at $1.8 billion last year but were now down 9.7% in each of the two most recent weeks.
“Bud Light is ‘sick.’ “It’s now infected other healthy brands with the InBev portfolio and that’s a bigger problem in my mind.”
– said Bump Williams, founder of Bump Williams Consulting.
BUD stock price analysis
Over the past month, Anheuser-Busch’s shares have experienced a notable trading range of $58.63 to $66.41.
At the time of publication, the stock was trading at $58.83, after slipping 0.93% on Monday, May 22. Over the past week, BUD fell 4.14%.
Year to date, Anheuser’s share price is 2.45% in the red and down more than 12.3% from its 52-week high of $67.09.
Analysts’ comments on BUD
Weighing in on Bud Light’s challenges, Evercore ISI analyst Robert Ottenstein said the worst of the sales declines may have already passed.
“A second week of flattish trends strengthens the possibility that tracked channels have reached a point of stabilization, albeit at significantly lower levels for AB InBev than prior to the controversy.”
– Ottenstein said.
He also noted a noticeable sales improvement in the rest of Anheuser-Busch’s portfolio, which may suggest “that trends impacting the rest of the portfolio may be starting to reverse.”
Finally, as the boycott against Bud Light continues to unfold, Finbold has taken the initiative to gather insights from notable finance experts in order to evaluate the potential future price predictions for BUD stock by the end of 2023 to assess the impact of the ongoing boycott on the overall outlook and trajectory of the stock.
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