• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Is This BUD Still For You?
Stock

Is This BUD Still For You?

by May 29, 2023
by May 29, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

BUD’s stock price has fallen hard, but it may be at a critical buy point. Is the king of beers (or rather, its parent company) a good buy, or is it something to avoid for now? Let’s take a closer look.

What Happened to BUD?

In April of 2023, the Bud Light brand became the center of an online firestorm, particularly on social media, after launching a promotional campaign with a controversial influencer. Within a few months, the reigning king of beers got dethroned, so to speak (at least in the States).

Within those two months, the share price of Bud Light’s parent stock, AB InBev (BUD), plummeted nearly 15%. The word on Wall Street was that the stock price might take a deeper dive yet. Technically, the damage was pretty evident.

But here’s the thing: What if all this hysteria is just an overblown reaction to a marketing ad?

Was the ad enough to dismiss Anheuser-Busch InBev’s diversified beer portfolio, global leadership, dominant market share, and overall potential as a business? If not, does the stock’s decline present a buying opportunity?

A Technical Look at BUD’s Current Scenario

CHART 1: DAILY CHART OF BUD STOCK. The stock price could be close to a critical support level.Chart source: StockCharts.com (click on chart for live version). For illustrative purposes only.

BUD’s buckling in April finally gave way to a plunge in May, toppling the beer king nearly 15% from a high of $66.32 to a low of $56.63. The Relative Strength Index (RSI) and Stochastic Oscillator indicate that the stock’s price has entered oversold territory. Not surprisingly, BUD’s StockCharts Technical Rank (SCTR) also dropped from 96 in April to 39.

Still, BUD’s momentum saw a dramatic shift toward the end of last year, enough to bring the 50-day simple moving average (SMA) well over the 200-day (a Golden Cross event) in a fairly strong, rapid, and definitive gesture.

But if you’re bullish on BUD, here are a few actionable points to consider:

BUD may have declined significantly over the past month, but it’s about to hit its 200-day SMA, which might serve as a critical support level.Right below the 200-day SMA is the range between the 50% and 61.8% Fibonacci retracement levels—both of which serve as ideal entry points for traders looking to go long.

In short, there are technicals confirming this dramatic negative shift in market sentiment, yet you can also see that BUD is approaching a few actionable levels. So, what now?

The Difference is Drinkability (Bud Light’s 2008 Slogan)

In other words, is BUD’s entire portfolio of beers still “globally” drinkable? Here are a couple of things to ponder:

Anheuser-Busch InBev (BUD) is the largest beer company in the world.It controls a third of the world’s market share in beer products.BUD’s portfolio has a list of more than 100 brands.The Bud Light Rebellion is mainly an American response.

Think about BUD, with its huge variety of drinks and global presence. Now, imagine if Bud Light sales were cut by half. How much do you think that would impact their worldwide sales? Probably not much. So, the real question is, how popular are all their different drinks worldwide?

How Might You Trade BUD?

This depends on how risk-tolerant you might be with regard to an early entry. Opening a fraction of a position at the 200-day SMA might make for a smart early entry, yet you can expect the price, should it continue sinking, to penetrate or bounce anywhere within the 61.8% to 50% Fib retracement (around $52 to $55). Waiting for a lagging indicator, such as the Moving Average Convergence/Divergence (MACD) line crossing the signal line, or waiting for the RSI or Stochastic Oscillator to turn up from their respective oversold levels, might be a good way to confirm the trend reversal, but they may also get you in a little later.

Taking an early position is risky, and it relies more on faith in fundamentals than any technical assurances. Yet, technically, the price action is calling attention to its current (potentially actionable) position.

Final Thoughts

Bud Light’s controversial promo resulted in a lot of trouble for its parent stock. Still, despite the backlash, is it enough to hurt BUD’s entire portfolio of 100 global brands and a third of the world’s beer market share? If you think so, then avoid BUD. If you don’t think it can topple the leader, then BUD might present a great buying opportunity. Consider adding it to one of your ChartLists.

You Might Also Like
  • Master The Most Underutilized Options Income Strategy: Cash-Secured Puts
  • Election-Related Market Swings: How to Stay Ahead
  • Sector Rotation & Seasonality: What’s Driving the Market Now?”
  • What Are The Chances Of A Market Crash? This Indicator Says ZERO!
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Hunter Biden’s ‘sugar brother’ keeps the first son afloat amid multiple scandals
next post
Public cost of Atlanta’s ‘Cop City’ more than doubled in new estimate

You may also like

3 WAYS to Pinpoint When a Stocks Uptrend is Ending

December 10, 2024

Three Defensive Plays for Post-Tariff Survival

April 3, 2025

This Industry Just Broke Out And Is Poised To Lead...

November 14, 2024

Three Sectors Leading SPY Back To Offense

November 8, 2024

Bank Earnings Showdown: Emerging Trends You Need To Know

July 13, 2023

Week Ahead: NIFTY To Stay Tentative Over 6-Day Trading Week;...

January 25, 2025

Unemployment to Rise into 2024

September 14, 2023

Alert: Small-Caps Not Participating in New All-Time Highs

October 10, 2024

Quick Access to Your Chart Templates, The Secret Sauce That...

September 16, 2023

Flying Financials. Will It Be Enough?

July 26, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Jobs Growth Reveals NEW Opportunities in...

    January 6, 2024

    The Most Important Breadth Indicator to...

    January 21, 2023

    Fed’s Victory Lap and Next Steps...

    June 14, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here