Stocks of some well-known American corporations have struggled in recent months. Bud Light (NYSE: BUD), Target (NYSE: TGT), and The North Face (NYSE: VFC) after investors were scared off by the firms’ contentious relationships and advertising initiatives, leading to substantial falls in May.
Another well-known American company has drawn criticism for a controversial advertisement it recently released.
When cosmetics firm Maybelline released a video featuring Ryan Vita, a bearded self-proclaimed beauty professional, to sell a new collection of lip colors, the ad was received with widespread backlash. As a result, shares of L’Oreal (EPA: OR), a French personal care giant that owns Maybelline, have been seeming impacted by the drama.
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L’Oreal stock analysis
At the time of reporting, L’Oreal’s stock was valued at €403.25 ($448.67), indicating a decline of 3.41% since the beginning of the week, dropping from a peak of €422. However, today, there has been a slight uptick of 0.3% in the stock price.
As of now, OR finds itself situated in the upper range of its 52-week price spectrum, which suggests a relatively strong performance over the past year. The stock has established a support zone between €399.00 and €400.99, a critical level backed by various trend lines across multiple time frames, indicating potential price stabilization.
On the other hand, the stock faces resistance between €410.12 and €412.88, implying that reaching or surpassing this price range may present challenges in the short term.
Notably, the largest beauty and cosmetics company in the world in 2022 by sales was also impacted earlier this week on Tuesday after Deutsche Bank issued a ‘catalyst call sell idea’ on the cosmetics stock.
Analysis of China’s import data unveils a significantly more restricted consumption growth compared to the market’s expectations. The increase in China’s beauty imports over the past four years is attributed to premiumization rather than a surge in import volume, making the recent Maybelline backlash unnecessary and avoidable.
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