What is Corona’s stock price, and are they publicly traded? Investors cannot purchase shares of Corona itself. Constellation Brands ($STZ) is the producer of Corona beer, and investors can buy shares of their stock. With everything that’s happening how are they affected by the Coronavirus? Has Corona beer become a pun or a victim during the pandemic?
Chart by TradingView.
I can’t even believe I’m saying this, but there are some people out there afraid to buy a beer from Mexico because of a virus from China.
It’s actually kind of comical but, people are finicky and base decisions on all sorts of irrational beliefs.
It’s hard to believe this has to be said, but Corona, the beer, has nothing to do with Corona the virus. Therefore, Corona stock shouldn’t be taking a hit.
Our trading service is all about trading the charts. Sometimes that means, however, that you need to buy the rumor and sell the news.
The Timing Is Impeccable – or Not…
The outbreak of Coronavirus couldn’t have come at a worse time for Constellation Brands, aka Corona stock. As fate would have it, Constellation is in the middle of launching its new Corona-branded hard seltzer.
All at a smooth price tag of $40 million. To make matters worse, part of their marketing campaign includes a tweet “coming ashore soon.” Hilarity ensues, shareholders cringe, and the timing couldn’t be worse.Two recent surveys show the Corona’s brand is suffering from the Corona fallout. Dare I say they’re inflicted with their own version of COVID-19.
In a recent survey by public relations firm 5W, 38 percent of Americans polled reported they wouldn’t buy Corona “under any circumstances” because of the outbreak. Not surprisingly, another 14 percent said they wouldn’t order Corona beer in public.Likewise, another survey conducted by YouGov found customer’s intent to buy Corona beer hit its lowest level in two years. To make matters worse, Corona’s buzz score – the metric that measures favor-ability, has tanked since the beginning of the outbreak.
What Are the Next Steps for Constellation the Corona Stock and Beer?
- Playing a strong game of offence, the Constellation CEO Bill Newlands indicated surveys don’t reflect the company’s business performance. In fact, he called the “misinformation” about the virus’ impact on selling Corona beer “extremely unfortunate.” The next steps for the stock will depend on the economy moving forward and if people stop correlating the beer with the virus.
“Our thoughts and prayers go out to those affected by this terrible virus, and we hope efforts to contain it gain traction soon.”In a later statement, Bill said that their customers “understand there is no link between the virus and our business.
Moreover, “We’ve seen no impact on our people, facilities or operations and our business continues to perform very well.”But, as of today, Constellation Brands isn’t making any changes to its advertising despite the name’s unfortunate similarity to the deadly virus.
Sales of Corona Beer Remain Strong
Constellation Brands spokesperson Stephanie McGuane told CNN, “Sales of Corona remain very strong, and we appreciate the continued support from our fans,.”
On the same token, Constellation said Corona Extra sales in the U.S. grew by 5 percent in the four-weeks that ended February 16. Put another way, that’s close to double the sales trend of the last 52 weeks.On a positive note, online searches for “corona beer virus” spiked in early February, but have since declined. All may be well for Corona, after all.
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The Pandemic Impact on the Global Stock Market
The February drop had hammered the stock price of the Constellation Brand. But so has the rest of the stock market. According to Dow Jones Market Data, the S&P 500 suffered its fastest-ever 10% decline. Just two weeks ago, the S&P dropped 12.8%, leaving it down 14% from its highs. Today, March 16th, we halted all stocks for a limit down of -7%!
As a matter of fact, this has been the fastest the market had ever corrected from an all-time high. Our online trading courses show you how to trade this down market.
Corona Stock Final Thoughts
So now what with Corona beer stock? Right now, investors are indiscriminately selling everything. But, everything won’t be hurt by the pandemic. Whether or not the recent selloff in the stock market is an opportunity for traders and investors to decide. Personally, I feel this irrational selloff is an opportunity. So, much like other health outbreaks, this too shall pass. Besides, over time the fears of the pandemic will fade, like with all others before it. But, whether the brunt of the selloff is behind us or not – that’s up for discussion. Regardless, there’s plenty of stocks to buy on the dip. Having said that, if your due diligence is there and your instincts are correct, anyone can make money during a downturn.