Triple Your Money from the 'Bud Light Boycott'

by Andrew Zatlin August 01, 2023 1:00 pm ET

Bud Light continues to get "lighter."

Sales are still plummeting following a disastrous social media campaign...

And now, the beer company will lay off almost 400 workers.

What's my takeaway from this saga? An intriguing investment opportunity.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Triple Your Money from the 'Bud Light Boycott'

Remember the "Bud Light Boycott"?

In May, the beer company partnered with social media star Dylan Mulvaney to promote its product. And it seemed like a good idea at the time.

Mulvaney has 10 million followers on TikTok – that's about as many people who watch a professional football game – a number of whom likely represented an untapped customer base for Bud Light. Smart plan, right? Wrong.

It turns out, Mulvaney's following largely stemmed from their gender transition journey. And a lot of Bud Light's current customers were upset at this collaboration and took to boycotting the beer brand.

Soon after, sales plummeted. Bud Light lost $25 million in sales every week. Meanwhile, the stock price of its parent company, Anheuser-Busch InBev (BUD) fell 10%, wiping $12 billion off its market cap.

Today, the problems at Bud Light continue. But as I'll explain, they've revealed a unique investment opportunity.

Is 'Going Woke' Worth it?

As I mentioned above, Bud Light will now lay off 380 workers. That's thanks to the drop in sales over the past few months.

Notably, the company's CEO isn't among those being fired. But he, along with his Board of Directors, is taking a step back and doing some deep thinking.

They're asking themselves if it's truly worth it to "go woke" in this day and age.

Focus on Profits

Let me be clear: I'm not "anti-woke." I'm simply "non-woke," at least when it comes to my investing outlook.

Political leanings and personal feelings don't matter with respect to investing. Bottom line: I want my company focused on one thing above all else...

Making profits.

It's really that simple. And yet companies' attempts to go woke are taking away from that goal. Here's how...

Hemorrhaging Money

Today, going woke has become a multibillion-dollar industry. Companies are spending massive chunks of money on things like training staff members to be more woke and creating bigger human resources departments to reinforce this training.

Again, I'm not saying a company should completely ignore this kind of stuff. But a lot of them are hemorrhaging money due to this cause. And that's taking away from bottom line profits.

The Tide Will Turn

So let's focus on this as investors.

For a long time, investors have leaned toward buying stock in woke companies while shying away from those that are non-woke. After all, that's where the buzz has been.

Soon, I think these non-woke companies – the ones that have kept their funds focused on making profits – will start seeing the love. We'll soon get to an environment that tells investors to stop undervaluing companies that are in it to make profits.

I say we don't wait for the mainstream investors to lead this shift. Let's get started now by investing in one of my favorite non-woke companies in a sector that might not be on your radar.

I've introduced it to "Pro" subscribers before. And I'm eager to tell you about it, too, because over the next three years, its stock could double or even triple. Don't miss out!

We're in it to win it. Zatlin out.