Please ensure Javascript is enabled for purposes of website accessibility

Why Anheuser-Busch InBev Stock Plunged Today

By Joe Tenebruso - Mar 9, 2020 at 7:04PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The COVID-19 epidemic represents a new threat to the beer maker.

What happened

Shares of Anheuser-Busch InBev (BUD 2.37%) fell more than 10% on Monday, as investors grew increasingly concerned with the beer titan's earnings prospects.

So what

Anheuser-Busch InBev is getting hit from multiple angles. Its core beer business, already weakened from surging demand for its competitors' hard seltzer drinks, is now facing an even more menacing threat: COVID-19.

The disease caused by the novel coronavirus is spreading around the world, dampening beer sales in the process. People in China and other countries are going to social gatherings less often, including those at bars and sporting events, where much of Anheuser-Busch InBev's sales take place.

An aluminum can, a partially crushed aluminum can, and a fully crushed aluminum can.

Image source: Getty Images.

Now what

The beer giant has already lost more than $170 million in profits so far this year from the COVID-19 outbreak. And with many major sporting events, including the Olympics, likely to be delayed or canceled, more pain probably lies ahead for investors. Management expects Anheuser-Busch InBev's earnings before interest, taxes, depreciation, and amortization (EBITDA) to fall as much as 10% in the first quarter, in part because of a coronavirus-related downturn in sales.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Anheuser-Busch InBev SA/NV Stock Quote
Anheuser-Busch InBev SA/NV
$53.94 (2.37%) $1.25

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.