Twitter boss Elon Musk issued a warning to Target and Bud Light’s partner company Anheuser-Busch after consumer revolts against the brands’ marketing stunts.
Both companies have seen their stock prices plummet amid backlashes.
Charlie Kirk said:
“JP Morgan just downgraded Target’s stock, after its longest losing streak in 23 years citing ‘too many concerns rising.’
“Happy Pride Month Target!!”
Musk responded with, “Won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value.”
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
I kinda feel bad for laughing out loud at this. 🤭
— TJ (@TJAYTEXAS) June 2, 2023
The drop marks the company’s longest losing streak since an 11-day stretch in February of 2000.
JPMorgan analyst Christopher Horvers said: “We continue to believe that the consumer is broadly weakening while the share of wallet shift away from goods (51% of Target’s sales) is ongoing.
“While still positive on a three-year basis, Target has been giving back share on a one-year view and we believe this share loss could accelerate into back to school and linger into holiday given consumer pressures and recent company controversies.
“This could turn Target’s traffic negative after an impressive run of 12 consecutive positive quarters.
“Target over-indexes to the millennial customer and, should student loan payments come back on, the company is more exposed than others in our coverage.”
According to Fox Business:
Since widespread backlash over Pride merchandise polarized the nation, Target’s market value has fallen over $13 billion to $60.44 billion as of Wednesday’s closing price.
The company’s market value was over $74 billion earlier this month.
It extended the stock’s longest losing streak since November 2018, leaving shares at a new 52-week low of $130.93 per share.
Last week, Target confirmed “adjustments” to the Pride merchandising plans were underway after Fox News Digital learned it rolled back displays at some of its locations.
A Target insider told Fox News Digital that some Southern stores were forced by the corporation to move LGBTQ Pride merchandise away from the front of their locations after customer outrage to avoid a “Bud Light situation.”
The Pride merchandise continued to cause headaches for Target when many LGBTQ advocates slammed the company for moving the merchandise.