Should You Buy BUD Stock Now? The Case After Its Bud Light-Induced Tumble.

Bud Light sales have fallen this month amid a backlash over a social media promotion of the brand by influencer Dylan Mulvaney.

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Another day, another round of losses for shares of Anheuser-Busch InBev. Yet at least one analyst thinks the selloff may have gone too far.

AB InBev

(ticker: BUD) is off 2.2% at a recent check, a day after the stock notched its largest percentage decrease since the start of the pandemic panic in March 2020. The stock is on track to lose more than 15% this month alone.

The company has been in hot water since the beginning of April, when its Bud Light brand was promoted on social media by transgender actress and influencer Dylan Mulvaney. That led to a backlash by conservative commentators and customers, who said the messaging was as at odds with Bud’s core consumers.

AB InBev’s response only stirred up more ire, and two of its marketing executives are taking leaves of absence. The upshot has been declines in sales volumes for both Bud Light as well as other AB InBEV brands, and some investors are worried the company might have to cut prices to spur sales. 

Citi Research analyst Simon Hales notes that U.S. Nielson data through May 20 shows that Bud Light volume declines are continuing to accelerate, slumping 27.2%, compared with a 25% fall the prior week. That said, on a relative share basis, Bud Light’s volume share was down just 3.12%: That’s a rather modest decline compared with the 3.11% fall the prior week, “implying a slight stabilization [in] share losses vs recent…


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