Coty, the beauty company that bought up the majority stake in Kylie’s cosmetics empire last week, ended up taking a HUGE hit on Wall Street in the days immediately after their big purchase! And even though Kylie herself walked away with $600 million for her trouble, everybody else who had shares of stock in the company is hurting a little bit for cash right now! Uh-oh!
It was pretty interesting to watch the whole thing go down in real time… you’d think that after Kylie announced she was selling 51% of her empire to Coty, that their stock would rise in anticipation of the two powerful brands being aligned, right?! Well… the shares did do pretty well on Monday, even riding up a little bit late in the day, but throughout the rest of this week the price collapsed, and the stock is now officially down nearly six percent since Kylie got her cash! Crazy!
Shareholders are hurting a little bit now with the stock being at its lowest price in more than a month, and all the experts look bad after pretty much unanimously expecting the stock to rise considerably (obviously, it still might at some point soon). Hey, for now, the only clear winner to walk away in the black on this one is Kylie herself! Can this businesswoman foresee everything?!
There’s a reason we bring up Kylie’s impressive foretelling with her makeup biz: remember how she did the same damn thing with Snapchat? If you’re wondering how it’s possible for one woman to impact a company (or an industry, really) in such a way, never forget that time she singlehandedly took down the social media network after its app updated and she panned the new design and user experience.
That resulted in a TEN-FIGURE loss for the now-forgotten social media company, and serves as a permanent reminder of how powerful Kylie is, and how significant of a network of fans and customers she commands. It’s impressive, to say the least — and honestly it’s a little intimidating.
We’re sure Coty will soon see a boost from their jump into the KUWTK reality TV star’s makeup empire, but for now, they’re going to have to be patient… Kylie’s fans go where their idol goes, and if they feel like she’s selling something off and walking away from it, they go and do the same thing. Now that is brand loyalty…
