Anheuser-Busch (NYSE: BUD) stock price has retreated in the past few days as investors focus on the ongoing Dylan Mulvaney controversy. The stock dropped to a low of $65.21, which was lower than this week’s high of $67.67.
BUD’s Dylan Mulvaney controversy explained
One of the top culture war stories recently has been about Anheuser-Busch, one of the biggest alcohol brands in the world. The controversy started when the company launched a marketing campaign with teen sensation Dylan Mulvaney.
The company’s goal was to reach out to younger drinkers who it is struggling to gain market share. Mulvaney was one of the influencers who received cans of beer with her name on. The goal was to use her to reach millions of her followers.
The controversy happened because Dylan Mulvaney is a transgender person. As a result, there are concerns that the company will lose some market share as people opposed to the woke agenda avoid it. In a report, Beer Business Daily said that the company’s distributors in the south were spooked by the ad. It estimated that there will be a drop in sales.
Watch here: https://www.youtube.com/embed/Qr8OPmPE-j4?feature=oembed
However, the reality is that this controversy will not have an impact on the company’s sales. Many studies have showed that boycotts rarely work. There are many examples about this. For example, during his administration, President Trump railed against the New York Times and asked his supporters to boycott the company. Instead of failing, NYT added millions of customers.
Trump also pressed conservatives to boycott Apple. Instead, Apple grew to become the biggest company in the world. There have also been calls to boycott Twitter, Instagram, and Facebook.
Therefore, while the NyPost has declared that the Bud Light boycott has legs, the possibility of it succeeding is limited. Besides, beer lovers will not stop drinking their favorite brand because of this controversy.
BUD stock price forecast
BUD chart by TradingView
Is it safe to buy AB InBev stock? The daily chart provides a simple reason why the BUD stock price has pulled back in the past few days. As shown, the pullback happened when the shares rose to the important resistance level at $67.10. This was an important level because it was the highest level in June last year.
Meanwhile, the stock has been supported by the 50-day and 200-day moving averages. The two made a golden cross pattern in December. It has also formed an inverted head and shoulders pattern. Therefore, there is a likelihood that the shares will continue rising in the near term as investors target the 78.2% retracement level at $72.38.
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