Pride Boycotts

[CellarDweller]

Boycotts hit stocks hard. Here’s what might be next for Bud, Target and others caught in the anti-Pride backlash

By Christina Cheddar Berk

Even before Pride month was underway, it seems as if it was open season on companies celebrating the LGBTQ community.

One by one, companies have come under an expanding attack.  Anheuser-Busch, Target, Kohl's and VF Corp's North Face brand have all felt the vitriol of this latest push from the right. And the list keeps growing. These companies have been branded as “woke capitalists” ”” and worse ”” as critics urged boycotts of these companies’ products. Bud Light came into the crosshairs after it struck a partnership with trans influencer Dylan Mulvaney, while North Face received backlash for an ad featuring drag queen Pattie Gonia. Target and Kohl’s have been criticized for Pride-themed clothing.

While it’s too early to say how successful these efforts will be in lowering sales at the companies recently drawn into this attack, damage has been done to the stocks already. And some on Wall Street expect that to continue with analysts recently downgrading Target's and Anheuser-Busch's ratings, citing in part the ongoing controversy.

“The main reason boycotts generally are effective is because they threaten the reputation of the company by putting the company in a negative media spotlight, and companies don’t want to have negative attention of any kind drawn to them,” said Brayden King, a professor of management and organizations, who has studied how boycotts impact company stock prices, in an interview.

https://www.cnbc.com/2023/06/03/anti-pri...next-.html