BUD stock price forecast: Will Bud Light boycott earnings?

AB InBev (NYSE: BUD) stock price has remained under intense pressure this year amid concerns about its American business. The stock peaked at $66.43 in April and then nosedived to a low of $52 in May. As a result, the company has underperformed the Nasdaq 100 and S&P 500 indices.

Anheuser-Busch InBev earnings ahead

You likely know why AB InBev stock price has taken a beating this year. As I wrote here, the company found itself at the center of a major cultural war in the US. It was criticized by the right for partnering with a transgender youth and by the left for its response to this criticism. 

As a result, the company has seen a sharp decline of its market share in the US, its most important market. Bud Light has recently been dethroned by Modelo, a brand owned by Constellation Brands.

With AB InBev’s sales falling, the company has embarked on a strategy to boost growth while cutting costs. In line with this, the company has allocated more money in marketing while slashing 200 American corporate jobs.

Therefore, the company will be in the spotlight this week as it publishes its financial results on Thursday. Analysts polled by Reuters expect the data to show that its total revenue during the quarter was $15.8 billion, up from the $14.9 billion it made in the same period in 2022. This revenue will also be higher than the $14.5 billion it made in the first quarter.

The most important part of the company’s revenue statement will be its American segment since they will show the impact of the boycotts. As I have written before, I believe that the company will weather this storm well because of its global presence. Also, the history of boycotts shows that they rarely work in the long term.

AB InBev stock price forecast

The 4H chart shows that the BUD stock price has drifted upward in the past few weeks. In this period, it has formed a rising wedge pattern, which is shown in black. In price action analysis, this pattern is usually a bearish sign. The stock is consolidating at the 25-period and 50-period moving average.

Therefore, because of the rising wedge pattern, my guess is that the shares will have a bearish breakout after earnings. If this happens, BUD share price will retest the support at $55.