Why Ambev S.A. Dropped Today
Shares of Ambev S.A. (NYSE:ABEV) fell hard on Monday, down 15.5% as of 1:47 p.m. EDT.
Ambev is the Latin American subsidiary of global beer giant AB Inbev (NYSE:BUD), which owns a slight majority of Ambev S.A.
While the beer industry has been struggling in recent years, today’s sell-off has nothing to do with company-specific financials. Rather, the surprise win by far-left candidate Luiz Inácio Lula da Silva in the Brazilian Presidential election yesterday appears to have caught investors in Brazil, who were betting on a win for the more business-friendly Flávio Bolsonaro, off guard.
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