Amidst the turmoil surrounding an Instagram ad campaign for Bud Light featuring transgender activist Dylan Mulvaney, the Bill Gates Foundation Trust has acquired 1.7 million shares of Anheuser-Busch InBev (NYSE: BUD) worth approximately $96.59 million. This investment by the high-profile investor comes at a time when the parent company of the once-leading beer manufacturer in the United States is grappling with controversy and declining stock prices, leading to layoffs affecting nearly 2% of its workforce.
The acquisition of shares by Bill Gates’s foundation occurred in June, following Anheuser-Busch’s release of a disappointing earnings report. This move adds the beverage producer to the foundation’s portfolio, which also includes investments in companies like Walmart (NYSE: WMT), Microsoft (NASDAQ: MSFT), and Deere & Company (NYSE: DE).
Currently, BUD stock is trading at $56.40, having experienced a 1.16% decline in the past 24 hours but showing a marginal increase of 0.95% over the previous five days. On a monthly chart, the stock has gained 0.12% based on data retrieved as of September 12. From a technical analysis perspective, the support zone for BUD stock ranges from $44.51 to $55.55, while resistance lies between $58.28 and $67.09, which the stock needs to surpass to strengthen its recent modest recovery.
Earlier this year, Anheuser-Busch witnessed a significant drop in its US-listed shares and lost its long-standing position as the top-selling brand in the US on an annual basis, ending its domination of the charts for over two decades.
In the wake of the controversial marketing campaign and the subsequent boycotts and sell-off, distributors for the beleaguered brewer have shifted their focus from expecting Bud Light sales to recover, as they had dropped over 25% since the beginning of the year. Instead, they are concentrating on attracting new customers in the evolving landscape.
Considering all factors, Bill Gates Foundation Trust’s substantial investment in BUD stock could potentially contribute to Anheuser-Busch’s efforts to regain some of its former market prominence.
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