Stocks chances of providing “market beating returns” has dwindled.
St. Louis – Carlos Laboy, managing director at HSBC (one of the world’s largest banking and financial services organizations), recently told CNBC, “There are deeper problems than ABI (Anheuser-Busch Inbev) admits.”
That statement came after Anheuseur-Busch’s stock was downgraded to hold by HSBC analysts amid “crisis” following Bud Light’s marketing campaign featuring transgender activist Dylan Mulvaney in April. A stock is downgraded when analysts see indications that the stock has “cooled” and the stock’s chances of providing “market-beating returns” has dwindled.
Traders will sell the stock assuming others will do the same.
“Is ABI’s leadership getting the brand culture transformation, right? It’s mixed,” Laboy recently told CNBC. “At Ambev, we think the answer is ‘yes;’ in the U.S., we think it’s ‘no.’ The way this Bud Light crisis came about a month ago, management’s response to it, and the loss of unprecedented volume and brand relevance raise many questions,” Laboy continued.
According to a Market Watch report, Anheuser Busch stock dropped again Friday 0.62% to $61.05 on a “an all-around dismal trading session for the stock market.” Anheuser Busch InBev closed $6.04 below its 52 weeks high of $67.09 (achieved March 31).
Photo courtesy of Anheuser-Busch.
