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What Does Wall Street Think About Ambev S.A. (ABEV)?

Ambev S.A. (NYSE:ABEV) is one of the best affordable stocks under $5 to buy for the next 3 years. Ambev S.A. (NYSE:ABEV) was downgraded to Market Perform from Outperform by Bernstein on November 26, who assigned a $2.88 price target to the stock.

The firm supported the rating downgrade with the company’s valuation, stating that the shares rose 16% year-to-date. While Bernstein continues to like the company’s long-term fundamentals, it told investors that it believes the current expectations to now  be “overblown”, and thus recommends that investors take profits and wait for a more attractive entry point.

Ambev S.A. (NYSE:ABEV) also received a rating update from Goldman Sachs analyst Thiago Bortoluci on November 11, who maintained a Sell rating on the stock and set a $1.95 price target.

The rating updates came after Ambev S.A. (NYSE:ABEV) released its fiscal Q3 results on October 30, with net revenue (organic) for the quarter rising 1.2% compared to last year. Management stated that top-line performance was driven by a 7.4% net revenue per hectoliter growth.

Gross margin also expanded by 10 bps to 51.5% and normalized EBITDA margin expanded by 50 bps to 33.9%, supported by cost management and effective revenue. However, high cash taxes led to cash flow from operating activities dropping by 14.7% compared to R$8.108 billion in fiscal Q3 2024.

The company also reported that normalized EBITDA also rose by 2.9%, with all its business units delivering growing or flat EBITDA. Normalized EBITDA margin expanded by 50 bps to 33.9%, attributed to effective revenue and costs management by the company.

Ambev S.A. (NYSE:ABEV) produces, distributes, and sells beverages. Its offerings include carbonated soft drinks, beer, and other non-alcoholic and non-carbonated products. The company’s operations are divided into the following geographical segments: Brazil, Central America and the Caribbean (CAC), and Canada.

While we acknowledge the potential of ABEV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ABEV and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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