Starting on January 1, 2024, Bud Light will solidify its position in the sports sponsorship world, after signing the largest deal in UFC history. With this deal, the brand consolidates itself as the UFC’s official beer.
Notably, the agreement will deeply integrate Anheuser-Busch InBev’s (NYSE: BUD) Bud Light stock into various UFC events and activities, such as press conferences and weigh-ins.
From a marketing perspective, this can significantly increase the brand’s exposition, which the stock market usually sees with positive eyes. Bud Light’s logo will also be seen on digital content and on air.
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In this context, Bud Light’s prominence as UFC’s official partner is anticipated to compensate for the negative impacts of its boycott episode, in Gurgavin Chandhoke’s words, on October 24. Gurgavin is an event-driven trader, CEO, and founder of uINVST.
Bud Light stock price analysis
Following this sponsorship deal with UFC, stock analysts predict a positive turnaround in the stock market for the beer giant. As it demonstrates Bud Light’s resilient strategy to regain investors’ trust and enhance their engagement within the sporting community.
Meanwhile, BUD is trading at $53.75 per share by press time, in the pre-market on the New York Stock Exchange (NYSE) — slightly crossing the 200-hour EMA. If Bud Light shares manage to hold above this moving average, it can start a short-term uptrend following the reported news.
However, the true impact of this strategic move remains to be fully measured by future stock performance during today’s session and also for the rest of the year.
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