Over the past few months, numerous companies have found themselves in the crosshairs of a growing conservative backlash. Still, most notably, Anheuser-Busch’s Bud Light (NYSE: BUD), Target Corp (NYSE: TGT), and VF Corp.’s (NYSE: VFC) North Face brand are among those who have faced the brunt of this vehement opposition.
Described as “woke capitalists” and subjected to calls for product boycotts, these companies have become the focus of intense scrutiny. The ire was triggered by Bud Light’s partnership with trans influencer Dylan Mulvaney, North Face’s ad featuring drag queen Pattie Gonia, and Target and Kohl’s Pride-themed clothing.
These boycotts have been reflected in these companies’ stock prices, with three losing roughly $25.6 billion in market valuation since May 1, 2023.
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Anheuser-Busch InBev (NYSE: BUD)
Anheuser-Busch InBev, one of the world’s largest brewing companies, came under extreme scrutiny after the brewer launched an ad campaign involving transgender activist and TikTok celebrity Dylan Mulvaney in April.
The sponsorship led to backlash from American conservatives, ultimately forcing investors to jump ship.
Since May 1, the company’s market cap plummeted from $130.2 billion to $117.2 billion on June 19, representing a drop of $13 billion, or around 10%.
At press time, the BUD’s stock price stands at $58.21 per share, down from $64.65 on May 1.
In the wake of those headwinds, Bud Light also is no longer the top-selling brewer in the US, with Constellation Brands’ Modelo Especial recently seizing the number one position.
Target Corp. (NYSE: TGT)
Target, one of the largest retail chains in the US, was also a subject of criticism in recent months after releasing a Prite-themed clothing line for children in May.
Since the start of last month, the retailer lost $10.8 billion in market valuation, plunging from $72.4 billion to $61.6 billion. In percentage terms, it marks a drop of nearly 15%.
Target’s stock price stood at $133.81 at press time after closing down 2.9% on Friday, June 16.
Over the past week, TGT witnessed a slight recovery, climbing more than 3.3%, although the stock still remains down over 10% since the start of the year.
VF Corp. (NYSE: VFC)
VF Corp, an apparel and footwear giant that owns one of many numerous flagship brands like North Face, also lost substantial stock value after getting embroiled in fierce controversy for releasing a ‘come out’ pride ad featuring activist Pattie Gonia.
The backlash weighed on investors’ sentiment toward the company, with VFC losing more than $1.5 billion in market cap since May 1, from $8.8 billion to $7.5 billion, or 14.7% in percentage terms.
During that period, VF Corp.’s share price tumbled from $23.07 to its June 16 closing price of $19.51.
The company’s stock remained relatively unchanged on a weekly chart but remains deeply in the red since the start of the year, plummeting over 30.5%.
In conclusion, although these companies have faced significant challenges in recent weeks, it is essential to maintain perspective and not jump to conclusions about their ultimate fate. The stock market is a constantly evolving environment where fortunes can swiftly change.
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