SAM - The 1 Thing Boston Beer Didn't Want to Happen Just Happened
Investors were warned Boston Beer (NYSE: SAM) was the stock that had the most to lose if the hard seltzer market had peaked. Because the brewer has gone all in on the flavored malt beverage, producing more seltzer than beer at this point, its stock was at risk if the once-hot drink had reached maturity.
Those fears were realized last week after Boston Beer admitted it badly misjudged how frothy market demand for its Truly hard seltzer was. Second-quarter profits were hurt and full-year guidance was slashed, causing the brewer's stock to plunge 26% on the news.
This is a worrisome development, because it is one that's not likely to correct any time soon, if at all.
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The 1 Thing Boston Beer Didn't Want to Happen Just Happened