Two well-known billionaires and investors are duking it on Twitter over the belief that companies that go woke often go broke. The debate comes as companies such as Anheuser-Busch InBev BUD and Target Corp TGT have faced boycotts over their support of the LGBTQ+ community.
What Happened: Billionaire Chamath Palihapitiya shared an article on Twitter that showed people were moving to states in the South. The tweet prompted a sharp response from Mark Cuban, who has been speaking out recently on the limited impact of boycotts to woke brands.
“Go woke, go broke,” Palihapitiya tweeted. “Just in the past few years, there has been a $160B swing in income based on these two groups (South + $100B, Northeast - $60B). Is the major difference between these two groups only ideology?”
Palihapitiya cited a Bloomberg article that showed 2.2 million people moved to the Southeast in the last two years, creating a “$100 billion wealth migration.” The story cited the states of Florida, Texas, Georgia, North Carolina, South Carolina and Tennessee as now contributing more to the national GDP than the Northeast region.
One Twitter user (@CorleoneCapital) suggested that shutdowns during the COVID-19 pandemic in certain states led to changes in residency.
“Ppl have been moving to FL from NY for decades. It’s just on a larger scale now,” the user tweeted.
Palihapitiya responded that it could have been several items that led to the changing of the guard.
“My guess is that SALT (state and local taxes) lit the fuse and Covid added the gas. I think generally, most people want: 1) decent weather 2) good job 3) low taxes 4) gvt that stays out of their way 5) nice neighbors.”
Related Link: Bud Light US CEO Avoids Question on Woke Controversy, Working With Dylan Mulvaney Again
Cuban Chimes In: Billionaire investor and NBA team owner Cuban wasn’t a fan of Palihapitiya’s tweet and responded with “Can you name one woke company that has gone broke?”
Palihapitiya responded with a link listing 452 startups that have failed.
“This list isn’t entirely of woke companies, but I suspect a few of these companies fit the bill…” Palihapitiya said.
Cuban wasn’t a fan of the link or the suggestion that startups could be examples.
“A list of STARTUPS failing is weak and you know it Chamath,” Cuban said.
Cuban went on to say that “most startups fail. Saying some failed because he ‘suspects’ they may be woke is ridiculous and he knows it” of Palihapitiya.
Palihapitiya then shared a list of companies that went bankrupt in 2022.
“This includes many non-startups and is for 2022 only but other years are linked therein. I’m sure some of these will also meet the mark,” Palihapitiya said.
Cuban shared a chart of Walt Disney Co DIS compared to iHeartMedia IHRT with Disney up 2.4% year-to-date and iHeartMedia down 41.6% year-to-date.
“The cool thing about obvious is that there is always data…I’ll take your woke $DIS and compare it to a media company that is the home for most conservative media,” Cuban said.
Cuban also cited the performance of Papa John’s International Inc PZZA, which he called a conservative company.
“Personally, I don’t think what happened to any of these companies had anything to do with being Woke, or Partisan. Not even close. I think this about social media being so performative,” Cuban said. “Come up with something that gets people amped up and leverage it as far as it will take you.”
Cuban said Bud Light didn’t do anything wrong and people like Kid Rock saw an opportunity to get people fired up.
“What a great branding moment and movement for him!”
Cuban said he loves Bud Light and it’s the only beer he drinks.
“Last thing I care about is who is mad about who or what company because they are woke or conservative. That’s all just performance art on social media these days. I’ll pick what I like because I like it.”
The tweet battle with Palihapitiya comes after Cuban showed support for companies that choose to embrace “woke” ideology, which he called good for businesses.
“There is a reason almost all the top 10 market cap companies in the U.S. can be considered ‘woke,'” Cuban told the Pittsburgh Post-Gazette.
Radio host Clay Travis chimed in on the debate to have a “long-form conversation” with Cuban.
“I’ll lay out what I think, you lay out what you think. Long-form, no short soundbite cuts,” Travis said.
Cuban said they could debate on Twitter.
With Elon Musk and Mark Zuckerberg gearing up for a potential cage match to settle their disagreements, could Cuban and Palihapitiya be the next to enter the ring?
Read Next: Bud Light Boycott Impact: King Of Beers Owner Dethroned As Top-Selling U.S. Beer Brand
Photo: Mark Cuban, Shutterstock; Chamath Palihapitiya, photo by Christopher Michel, Flickr Creative Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
