We recently published a list of 10 Firms Buck Broader Market Optimism. In this article, we are going to take a look at where Ambev S.A. (NYSE:ABEV) stands against other firms buck broader market optimism.
Wall Street’s main indices finished in the green territory on Friday amid a series of catalysts buoying investor appetite.
The Dow Jones Industrial Average rose by 0.80 percent, while the S&P 500 and Nasdaq Composite rallied by 1.26 percent and 1.77 percent, respectively.
Despite the wider optimistic sentiment, 10 companies managed to post declines. Here is why:
To come up with Friday’s top losers, we considered only the stocks with 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 S.A. (NYSE:ABEV)
Shares of Ambev S.A. (NYSE:ABEV) dropped for a sixth day on Friday, losing 3.54 percent or 0.0653 points to close at $1.77 apiece as the company grapples with uncertainties brought about by strict regulations, high taxes, inflation, and rising costs.
A report by Statista earlier last month said that the global beer market is facing uncertain times as consumption in key regions noticeably declined coupled with rising costs. In the US alone, production volume fell by 19 percent, reaching a new low of 165 million barrels in 2023.
A major factor behind the decreasing demand is that global drinking habits have shifted dramatically over the last few years. Modern consumers are increasingly focused on health and wellness and seek alternatives to traditional alcoholic beverages, giving rise to the rapidly growing low and no-alcohol trend.
Overall, ABEV ranks 9th on our list of firms buck broader market optimism. 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 time frame. 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.