Comments by "Maxwell Benz" (@Tential1) on "Bud Light STOCK DOWNGRADED As Wall Street PANICS Over SALES Tanking \u0026 Distributors ABANDONING Brand!" video.

@jek4837 because, unless you can keep this up for years, this means nothing. You value a company based on ALL future cash flows. So, unless you intend to NEVER stop, at a certain point, cash flows normalize. When you actually manually do the math in excel, it makes sense. Short term massive losses are at most a 4-5% loss in value for a company. Hence why stocks rebounded after corona. Traders remembered how to do their models again. You need permanent loss in revenue to hurt a stock, and so far, no one can believe that's the case. I would need to see the boycott hurt earnings for 2-3 years straight before I would say "OK, this stock is worth 30% less" and if they can Raise prices 4-6% a year in between.... Ya... It's really hard to make the stock tank unless you can cut net income by 50% and leave zero hope of recovery.
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Why can't this go global?
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@jek4837 essentially, to summarize on the stock price, the only way traders will rerate is if the sales drop is permanent and, there is no HOPE. HOPE is the key thing. If there is a hope of revenue normalization, the stock can't tank, nor should it. And, I'd need to see global numbers. Just not something I'd dig further into. I looked at all the alcohol companies before, I didn't like the price for what they are. But, if your goal is to hurt the company you need a global, sustained boycott, with an impairment to the brand identity that persists for more than 3+ years. Because, traders know, people move on, profits usually normalize. So it's best to bet on reversion to the mean. So unless the brand is EXTREMELY toxic, hell, I'd go back and review the financials again, see if it's a buy, if the stock tanks. We buy anything dude... It's actually literally our fiduciary duty to do so. I don't give an f what the company does. Is it legal? Do the financials make sense? Is it profitable for me or my clients? Yes then I buy it.
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Wasn't "Wallstreet" as a whole. Just certain firms. This isn't a monolith... Traders have no love for each other.... Or anything really. If they can predict where line go, they try to make money. Wallstreet as a collective agrees on nothing... Hence the volatility in stocks. Most firms just aren't going to comment on this, because it's radioactive. HSBC apparently gives zero fs. Beer has no economic moat, switching costs are minor. I can assure you, the average person trading such a stock is simply avoiding this.
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