"NOM Believes Its Starbucks Boycott Works, Except It Doesn’t Understand The Stock Market"
Last week, ThinkProgress identified how the National Organization for Marriage’s boycott of Starbucks has absolutely no momentum and has had no impact on Starbucks’ business. Since then, NOM’s Jonathan Baker countered that the coffee company’s stock has technically declined a bit — from $53.81 to $51.97 — since the launch of the boycott, boasting that the organization’s paltry efforts have been “part of the equation.” But David Badash points out that Baker doesn’t know the first thing about assessing how a company’s stock is performing against the rest of the market:
The DOW is down 3.29% since March 21. The NASDAQ, on which Starbucks is listed, has performed worse: down 4.05%. Starbucks (SBUX) is down less than half of both: 1.34%. So despite Dump Starbucks’ 45,578 people, Starbucks is performing much better than the market. Yes, Starbucks stock has dropped slightly, from $53.81 to last night’s closing of $52.39. A drop of $1.42 is hardly cause for NOM to celebrate.
There is no victory here at all. If anything, NOM’s campaign might be credited for the stock’s surge to $61.67 in April before its leveling out after the media attention dissipated. To try to claim success for such a façade is desperation at its most obvious.