The Weekly Memo: Market Cap Matters
I’ve been in politics long enough to observe plenty of companies wade into politics and receive blowback. While consumers on both sides of the political spectrum have attempted boycotts against national brands, they have rarely made any meaningful impact in the past.
However, recent history tells us that market cap clearly matters in terms of corporate political behavior today.
Here are a few recent examples:
· According to Fox Business, Cracker Barrel lost $143 million in market value after the woke rebranding fiasco.
· Disney lost around $100 billion in market cap following their woke gender ideology push, according to the Heritage Foundation.
· In the case of Bud Light, a boycott did objectively hurt the company with more than $1 billion in lost sales, according to CNN. However, the company’s stock also lost $27 billion due to the Dylan Mulvaney debacle, according to the New York Post.
Sales do add up and can certainly impact a company over the long term. Yet, in Post-Woke America, investors are more sensitive than ever to the disenfranchisement of the “silent majority.” To this end, Wall Street’s tolerance of woke activism in the boardroom is objectively far less than it used to be.