Posted on 06/06/2023 9:09:14 PM PDT by SeekAndFind
We’ve seen Target take a huge stock dive with about $14 billion in market cap lost as of Tuesday, since the middle of May. We reported how they faced two downgrades — from JP Morgan and KeyBanc — and had been on the worst losing streak that they’ve had in 23 years. JP Morgan cited as the basis for their downgrade “too many concerns rising.”
That’s a massive change in such a short period. Now, Elon Musk and Shark Tank’s Kevin O’Leary are warning about what might be the next shoe to drop for the company under siege.
O’Leary, on “Jesse Watters Primetime,” said that Target seems to have lost its way in terms of what its job is and how this was sending a warning sign to other companies about the dangers of going down the woke road.
On one hand, companies want to show their support of diversity in all the mandates that society is discussing openly. On the other hand, the job of a business — particularly from the perspective of an investor — and those that are retired, for example, that own the S&P 500 or own Target stock – are concerned that maybe they’re losing their way in terms of what the prime objective is: your customers, your employees, and your shareholders.
And so if you start to get too distant or too far away from the primary mandate, the market has proven itself to really, really punish you. And it’s woken up all kinds of boards.
They spoke about Target’s non-profit foundation funding an organization that wants to shut down Mount Rushmore because they claim it’s a symbol of “white supremacy.” The group also attacks the U.S. military.
O’Leary said that many companies still don’t understand the nature of social media and how such a reaction to them doing something the public doesn’t like can spread. He noted how Bud Light managed to do themselves in — after building the top-selling beer brand — in about “32 hours” after they endorsed Dylan Mulvaney’s “365 Days of Being a Girl.”
But he said, “There’re a lot of unhappy cowboys out there. They’re called your investors.”
Elon Musk even went further than that when he predicted how the shareholders might react.
Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value
— Elon Musk (@elonmusk) June 2, 2023
“Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value,” Musk declared.
If that happens, then the companies will get the message. They may not be fully cognizant of social media’s influence, but they will understand shareholders screaming at them as their shares plunge, and that could have a very significant impact on their actions.
It’s also not just a lesson for Target, but for other companies as well. They’ll see what Target and Bud Light have done, and the hit they’ve taken. They wouldn’t want to lose billions or have to face the ire of their shareholders. This could have a positive effect on moving the companies away from pushing political positions in the future.
I don’t get too excited about massive stock dips. Stocks go down, but if they recover later, it is like nothing ever happened for the company. Firestone took a hit. It recovered. I don’t see AB InBev recovering barring a spin-off or something dramatic to make it into a truly different company.
Target may yet recover if the women who shop there don’t come up with alternatives and be tempted to return. It is easier to switch beers than big box stores.
Target needs a major shake-up in leadership and in their Board.
That’s true. Nothing strikes fear in a BoD like a shareholder suit.
This needs to happen.
RE: I don’t get too excited about massive stock dips. Stocks go down, but if they recover later, it is like nothing ever happened for the company.
Well, if you believe this will happen for Target, now is your chance to make a killing by buying at its lowest point.
Go woke....go broke.
I hope shareholders are lining up their lawyers...
In a corporation, corporate officers have what is called a Fiduciary responsibility. They can held liable if they violate that trust.
I’m dragging my wife kicking and screaming, but we are dropping all business with Target.
From an investor standpoint, this was one of the few stocks that paid a dividend (3-percent or more) on a yearly basis. From 2005 to 2021....it was an attractive stock and generally going upward.
What I’d worry about now (if I owned the stock)...it’ll sink low enough that a unfriendly take-over would occur.
It isn’t social media’s influence, it’s what these mindless morons are pushing on normal, decent people. They live in a Godless echo chamber of evil and assume we do too.
If Target goes out of business, where will I go for my Satanic and Transgender kiddie supplies?
RE: where will I go for my Satanic and Transgender kiddie supplies?
If there’s a market for it... start a business !!
“On one hand, companies want to show their support of diversity in all the mandates that society is discussing openly. “
If Kevin O’Leary actually believes that he’s a fool.
“Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value”
— Elon Musk (@elonmusk) June 2, 2023
Because it’s a breach of their fiduciary responsibility. ESG and DEI corporate managers have been violating their responsibility since they began that garbage.
That could be a problem.
Oh they understand everything they have chosen to do.
They’re not stupid, they’re just Marxists.
Companies are well aware of the powerful influence of social media - that's why they attempt to harness them!
They are actually hoping that their "message" will "go viral" - only they sometimes miscalculate when it comes to determining if the overall impact will be positive or negative!
Regards,
Will Gillette ever recover?
It’s been five years, tens of billions lost and an iconic brand hanging on.
MSM denied it then ignored it with right wing boycotts don’t work.
BOL selling a commodity while alienating half the nation.
Govts don’t buy beer , razors, disney’s already peaked streaming or target product-but they not only buy tires-they are firestone’s largest single consumer.
If folks could pick an ip that wasn’t overtly leftist-they’d be doing it.
DIS the single most successful entertainment company in US history-fired CEO, three rounds of layoffs, closed down a 5yo billion dollar hotel, axed 50 shows incl numerous rainbow hits-seems entertainment is a commodity too.
Time for a conservative to buy the company..
I wouldn’t touch a retail based operation with a 12 foot pole right now. Could go radioactive any second. Not for DIE stupidity but from Amazon wanting to own that space.
Bfl
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