Is the Bud Light stock boycott now over?

In 2023, Anheuser-Busch InBev (NYSE: BUD), the owner of Bud Light, grappled with formidable challenges in the stock market. 

The company witnessed a precipitous decline in its stock value starting May, triggered by nationwide conservative boycotts in response to Anheuser’s campaign promoting progressive agendas. The backlash swiftly eroded Bud Light’s sales in the US, weighing on its market share. 

This tumultuous period persisted until late October, when a surprisingly robust quarterly report finally sparked a resurgence of investor confidence, breaking the prolonged downward trend.

What initiated Bud’s stock recovery?

After a months-long downtrend, Anheuser’s shares staged a reversal after its key business, Budweiser, reported better-than-anticipated organic sales growth and announced plans to repurchase stock.

The largest global brewer disclosed a 3.4% decline in organic volumes, attributed to a substantial 17% drop in sales volumes across North America, despite compensatory gains in other regions. However, Anheuser-Busch reassured stakeholders that its US market share had maintained stability from late April through September’s conclusion. 

Though the US market continues to cause headwinds for the company, Anheuser’s management claimed that the market share has been showing signs of stabilization. 

Meanwhile, the company faced another headwind last month when the Teamsters union said that 99% of its members had voted to authorize a strike at its US breweries. The union sought improved wages, better job protection, and healthcare and retirement benefits for 5,000 of its members working at breweries. 

BUD stock price analysis

At the time of writing on January 12, shares of Anheuser-Busch are sitting at $65.14, down 1.5% in the past 24 hours. 

The stock is up around 3% on the monthly chart, and around 7.7% in the past year, underperforming the broader market.

While Anheuser’s revenue in various markets displays promising trends, North America remains a challenge, with a 12.7% decline in organic revenue during the latest quarter. This lingering issue suggests that a significant upside for BUD’s shares in the foreseeable future may be constrained.

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