Staff Reports
Target Corporation’s “woke” stance may have cost them $14 billion in market cap as of June 2023. This comes after JP Morgan and KeyBanc downgraded them and Target faced its lowest losing streak in 23 years. Now two prominent figures have expressed their concern over what could be Target’s next move that may add to their already devastating financial situation. Elon Musk and Shark Tank’s Kevin O’Leary recently shared their opinions with O’Leary stating on “Jesse Watters Primetime” that Target may have lost its way in terms of what their job is. Both Musk and O’Leary warn Target and other companies about the dangers of going down the woke road.
There is a fine line between showing support for diversity and losing sight of the end goal, which is to serve their customers, employees, and shareholders. If a company starts to stray too far from its purpose, it risks financial repercussions as the market has proven time and time again. Target’s nonprofit foundation funding an organization to shut down Mount Rushmore for being a symbol of “white supremacy” and “attacking” the US military shows the company’s priorities are misguided.
O’Leary notes that many companies fail to fully understand the nature of social media and the potential reaction if they do something the public disagrees with. As a prime example, he highlights Bud Light, who managed to undo themselves after building the top-selling beer brand after 32 hours following their endorsement of a movement opposed by the public. Elon Musk predicted that shareholders would react negatively to Target’s stance, stating that there “won’t be long before there are class-action lawsuits by shareholders against the company and board of directors for destruction of shareholder value.”
BREAKING: JP Morgan just downgraded Target's stock, after its longest losing streak in 23 years citing "too many concerns rising’.
Happy Pride Month Target!!
— Charlie Kirk (@charliekirk11) June 1, 2023
Target’s situation should serve as a warning to other companies that the market will react negatively to companies that push political positions. If they continue to do so, they risk losing billions or facing the ire of their shareholders.
Source: Red State
