In recent months, prominent US companies such as Bud Light (NYSE: BUD), Target (NYSE: TGT), and The North Face (NYSE: VFC) have encountered headwinds in the stock market. A backlash against their controversial partnerships and ad campaigns has spooked investors, with the aforementioned companies seeing sharp declines in May.
Now, another renowned US brand may come under scrutiny after launching a questionable ad campaign.
Notably, cosmetics and makeup maker Maybelline was strongly criticized after releasing a video involving Ryan Vita, a fully-bearded self-proclaimed makeup expert, to promote the company’s new lip color range.
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The Backlash
It is safe to say that Maybelline’s video with Vita did not impress all of its consumers. In fact, both the company and Vita have come under fire on social media for promoting a beauty product designed for women.
“Another day, another disturbing make-up ad. This time from Maybelline.”
– popular TV host Lauren Chen said on Twitter.
Another user likened the campaign to the one launched by Bud Light earlier this year, which caused a significantly negative impact on the beer maker’s sales and stock market performance.
“Sounds like Maybelline may be heading down a #BudLight path.”
For that reason, it shouldn’t come as a surprise if shares of L’Oreal (EPA: OR), a French personal care giant that owns Maybelline, witness bear pressure in the near term given the social media backlash against the campaign.
L’Oreal stock price
At press time on July 17, L’Oreal’s stock was trading at $465.52, after opening down 1.85% on the Paris stock exchange.
However, the company’s shares are up nearly 3% on the weekly chart and are relatively unchanged on a monthly basis.
Year-to-date, the stock gained over 23%.
As of now, L’Oreal’s stock remains relatively unaffected by the recent controversies surrounding its ad campaigns. However, it is worth noting that the situation could evolve if the backlash against the company’s latest advertisement intensifies. Investors will closely monitor the developments to assess the potential impact on L’Oreal’s stock performance in the coming weeks.
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