In recent weeks, a growing number of companies found themselves at the receiving end of a widening wave of criticism.
Most notably, companies like Anheuser-Busch (NYSE: BUD), Target (NYSE: TGT), Walt Disney (NYSE: DIS), and VF Corp (NYSE: VFC) have been dealing with particular backlash over their products, content, or marketing decisions, leading to substantial losses in the value of these stocks on their monthly charts.
Bud Light (NYSE: BUD)
Anheuser-Busch InBev, Bud Light owner and the largest brewing company in the world came under scrutiny after it announced a deal with activist influencer Dylan Mulvaney. The deal, which involved a promotional social media campaign, led to serious criticism and backlash, ultimately resulting in a major sell-off in BUD shares.
Consequently, the company’s stock lost more than 14.7% in the past month, plummeting from $64.71 to $55.17 as of June 8. During that period, the stock experienced a significant trading range from $64.74 to $53.05.
However, Bernstein analyst Trevor Stirling believes that the substantial sell-off in BUD was mainly “overdone,” suggesting a possible improvement in investor optimism toward the stock.
Walt Disney (NYSE: DIS)
Similarly, media and entertainment leader Walt Disney Co. also saw its stock price take a beating in recent weeks after facing backlash and dealing with boycotts led by conservative activities over some of the company’s content that promoted progressive agendas.
Because of that, investors have been trimming their holdings in DIS recently, pushing its stock price down more than 10% over the past 30 days. The company’s shares fell from $102.97 to $92.52 over that period.
Target (NYSE: TGT)
At the same time, retail giant Target has been grappling with severe backlash over its LGBTQ-friendly clothing collection for children.
The outrage escalated in the form of boycotts, with protestors knocking over Target’s pride-themed displays at one point, forcing the retailer to relocate those products and move them away from the stores’ fronts.
However, former Wall Street expert Kenneth Thom was bullish on TGT’s stock price recovery in the coming months, expecting it to end the year “along the lines of $165-170.”
VF Corp (NYSE: VFC)
Similar to the aforementioned companies, the North Face owner VF Corp (NYSE: VFC) has also been actively promoting liberal agendas, causing a drastic reaction from more conservative protesters and investors.
More specifically, the apparel and footwear company recently published an online ad featuring LGBTQ+ activist Pattie Gonia, resulting in widespread boycotts of the clothing brand.
Amid the commotion, VF Corp’s shares fell 11.8% over the past month, from $22.34 to $19.59. However, VFC witnessed notable recovery over the past 5 days, climbing more than 12.5%.
Analysts at Wall Street hold an average price target of $24.60 on VF Corp’s shares, implying a possible upside of over 25%.
In conclusion, while these stocks have undoubtedly experienced a challenging period in recent weeks, it’s important to remember that this doesn’t necessarily signify their demise.
The stock market is a dynamic and ever-changing landscape, where fortunes can reverse in the blink of an eye, with many market watchers believing the worst of the sell-off is already behind.
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