Anheuser-Busch’s stock price has fallen more than 3%, and lost $4 Billion on the back of the Bud Light / Dylan Mulvaney controversy.

The background scenario is that Bud Light (an Anheuser-Busch brand) secured Dylan Mulvaney as an ambassador. Dylan Mulvaney is an influencer and trans activist. She has been polarizing. Some people reacted vitriolically to this. Kid Rock, for example, filmed himself unleashing on a stockpile of Bud Light. There have been calls to boycott Bud Light and Anheuser Busch.

The boycotts have erased significant value from Anheuser Busch (ticker: BUD). BUD’s stock has fallen some 3.2% since Dylan Mulvaney was announced as ambassador. It is worse after adjusting for broader market movements. BUD’s cumulative abnormal return is -4.2% between 3 April and 14 April.

Many boycotts are short lived and their economic impact limited. Thus, there are questions over how long the bud light boycotts will last and how much they will erase from Anheuser-Busch’s revenue.

The precipitous fall thus begs the question of whether now is the time to ‘buy the dip’ in anticipation of BUD’s stock price recovering. However, as attractive, and as popular as buying the dip has become, there are good reasons to be cautious about doing so.

Each investor must make their own investment decisions. These decisions should be based on myriad sources, and not merely one opinion. They should also reflect individual circumstances and personal risk aversion. That notwithstanding, it is important to look at some of the risks facing BUD.