Entrepreneur and NBA team owner Mark Cuban is no stranger to sharing his opinions on the latest trending topics involving business, finance and the world at large. A recent conversation revealed his thoughts on companies “going woke” and his comments might surprise readers.
What Happened: Over the last several years, many companies have been accused of “going woke” and showing support for certain groups like the LGBTQ+ community. Companies that include Anheuser-Busch InBev BUD and Target Corporation TGT have seen social media boycotts as a result.
Cuban brushed off the notion that companies should be worried about the consequences of pushing through what many people consider “woke” agendas in showing support for certain groups.
“There is a reason almost all the top 10 market cap companies in the U.S. can be considered ‘woke,’” Cuban said in an interview with the Pittsburgh Post-Gazette. "It’s good business."
During the interview, Cuban said that embracing "woke" ideology is good for companies, as reported by the New York Post.
While sales of both Target and Anheuser-Busch’s Bud Light have been impacted by boycotts, Cuban called the dip in sales and the share prices of the stocks "meaningless."
“First, a dip in market cap is meaningless. You have to realize that there aren’t many individual owners of stocks – almost all ownership is via funds, and most trading is quantitative. So, it’s not like the drop is because tens of thousands of individual holders sold their stocks.”
While some call for boycotting companies that offer support to the LGBTQ+ community, Cuban said that “people want to do business with companies that care about their customers.”
Cuban called the show of support for certain groups an American trait that reflects “who we are as a country.”
Related Link: Bud Light Said It'll Buy Back Expired Beer In Wake Of Boycott
Why It’s Important: Shares of Target hit 52-week lows of $125.08 on Monday. The drop in share price can be attributed to recent analyst downgrades and the social media boycott.
Target shares have dropped 14.8% year-to-date in 2023.
Target announced it was removing some items from its Pride Collection from stores after calls for boycotts and worries about employee safety.
Shares of Anheuser-Busch InBev are down 6.7% year-to-date in 2023. Reports have said that Bud Light sales fell 23.9% in the month of April on a year-over-year basis. New reports say Bud Light sales have dropped 24.5% in the last four weeks.
The Bud Light brand faced backlash after trans activist Dylan Mulvaney shared that she was partnering with the beer brand.
The comments from Cuban are interesting, as companies face a balancing act of showing their support for groups and members of their employee base, while facing the risk of boycotts and accusations that they have gone “woke.”
Based on Cuban’s comments, it will be intriguing to see if sales and the share price for Anheuser-Busch InBev and Target rebound later this year.
Photo: Gage Skidmore on flickr
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