We recently compiled a list of the 10 Biggest Losers of This Week. In this article, we are going to take a look at where Ambev SA (NYSE:ABEV) stands against the other stocks.
Wall Street’s main indices all finished in the green during a shortened trading session this week, yet 10 companies–mainly technology stocks– still booked significant losses in their valuations. Let’s take a look at the extent of each company’s losses and the potential factors that could have dampened investor sentiment.
To come up with the biggest losers this week, we considered only the stocks that have at least $2 billion in market capitalization and $5 million in daily trading volume.
A close-up on several cans of freshly brewed beer in a commercial brewery.
Ambev SA (NYSE:ABEV)
Brazil-based brewing company Ambev (ABEV) saw a 9.09-percent decline in its share price during the past five days and a 4-percent decline in the first two trading days of the week alone.
The company on Tuesday traded as low as $1.88, before closing the day a little higher to finish at $1.90 apiece.
Ambev, the company which owns Brazil’s top alcohol products, remains challenged by various macroeconomic factors including higher costs of energy, raw materials, packaging, logistics, and labor, which are putting pressure on its brewing operations across various countries.
The overall beer production in the US also fell by 5.6 percent to 193 million hectoliters, making it the only beer-producing country in the Americas to witness a downturn in production volume.
Thomas Raiser, Managing Director of BarthHaas, commented: “The brewing industry is still feeling the effects of the war in Ukraine; companies throughout the entire supply chain are laboring under sustained high costs. Consumers in many countries are groaning under the burden of high inflation. We therefore only expect beer output to remain stable for the current year, but are unable to identify a clear trend for the future.”
Overall ABEV ranks 8th on our list of the biggest losers of this week. While we acknowledge the potential of ABEV as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ABEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.