Few companies have seen the kind of marketing backlash Anheuser-Busch (NYSE:BUD) has seen in recent quarters. Of course, investors in this alcoholic beverage giant have seen valuation compression for years. But BUD stock has been on a particularly steep downward trajectory more recently, following a sponsored post in 2023 with transgender influencer Dylan Mulvaney, alienating a segment of the company’s core consumer base. InvestorPlace contributor Will Ashworth credits BUD’s decline to the company’s excessive acquisitions and “too many crappy beers.”
However, in an intriguing turn of events, a recent Truth Social post from former President Donald Trump has shares of BUD stock up more than 3% in today’s session.
Trump commented on his social media platform: “Anheuser-Busch is a Great American Brand that perhaps deserves a Second Chance? What do you think? Perhaps, instead, we should be going after those companies that are looking to DESTROY AMERICA!”
Notably, this post came on the same evening as a fundraiser with an Anheuser-Busch lobbyist.
Let’s dive into what investors may want to make of this rather unique catalyst.
BUD Stock Moves Higher on Trump Post
It’s clear to many investors that the Budweiser marketing team may have been better off avoiding controversial topics. Other high-profile conservative-led boycotts of specific brands that have waded into certain politicized topics have done significant damage to companies in the past, and the case of Budweiser is among the most prominent examples in recent history.
The company has since sought to distance itself from controversy, taking a more conservative approach to marketing following a widespread boycott. And with lobbyists now targeting Trump and his base, the company appears to be hoping its image problem among a portion of its consumer base may be improving.
We’ll have to see how this all plays out, but a valuation bump of more than 3% in this $130 billion company is a big deal. This is a company I’ll continue to follow for updates as they come.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
