Bill Gates Bets on Bud Light: Buys 1.7M Shares

Microsoft founder Bill Gates purchased $1.7 million worth of shares of Bud Light, a market value of around $95 million, during the second quarter of 2023, the Daily Mail reported.

The billionaire appears to be betting on the company’s rebound after it lost hundreds of millions starting in April due to a failed TikTok advertising campaign with transgender influencer Dylan Mulvaney.

Gates also invested 10.8 million shares on Feb. 17, worth nearly $940 million, towards Heineken – the most prominent global competitor of Bud Light parent company Anheuser-Busch InBev SA/NV.

Since the failed advertising campaign, Bud Light has lost its position as America’s number-one beer brand to Modelo Especial. It previously held the number one spot for over 22 years, per NBC News.

Bud Light sales in off-premise locations have plummeted 20.1% on a volume basis since last year, with Modelo sales surging up 9.6% in volume.

Morgan Stanley analyst Sarah Simon told TipRanks that Anheuser-Busch weathered the COVID-19 pandemic well but has since suffered “substantial market share loss in the U.S., driven primarily by consumer boycotts.”

However, she believes Anheuser-Busch’s exposure to emerging markets in places like Brazil has kept its profitability afloat and will eventually catch the eye of investors.

“After one-off costs in 2023, we see profitability growth resuming in 2024, with strong cash flow growth driving leverage to the target 2.0x, allowing for both an increase in the payout ratio as well as the resumption of share buybacks from 2026,” Simon said.