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Here’s how much Maybelline stock is down this week after Bud Light-style backlash

Here’s how much Maybelline stock is down this week after Bud Light-style backlash

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.

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.

L’Oreal 5-day price chart. Source: TradingView

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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