Hims & Hers, a well-known online healthcare and pharmaceutical company, experienced a significant drop in stock value, losing nearly $210 million in a single day. This sharp decline occurred after the company’s CEO, Andrew Dudum, expressed support for hiring anti-Israel student protesters who have faced disciplinary actions at their universities. Following these comments, the company’s stock plummeted by 8%, closing at $11.26 after opening at $12.24.
Andrew Dudum, who is of Palestinian-American descent, made these remarks amidst ongoing nationwide protests at universities where students are calling for divestment from Israel due to its actions in Gaza. His statement, “Moral courage > College degree,” was made on Twitter as a direct endorsement of the students’ actions, encouraging them to apply to Hims & Hers despite potential university sanctions. Dudum’s tweet emphasized support for those protesting against what they see as the genocide of Palestinian people.
The reaction to Dudum’s comments was immediate and significant, with trading volume more than doubling and share prices continuing to fall in after-hours trading. This market response highlighted the sensitivity and potential repercussions of corporate leaders making political statements, especially those pertaining to highly contentious issues.
Contrary to Dudum’s supportive stance, other business leaders have taken a more critical view of the protests. For example, Palantir CEO Alex Karp suggested that protesters should be sent to North Korea to gain perspective, illustrating the polarized opinions within the business community about the appropriateness of corporate involvement in political and social issues.
Dudum’s approach marks a stark contrast from executives like Bill Ackman, who publicly stated he would not hire students involved in anti-Israel actions at Harvard. This divergence in executive opinion underscores the broader debate over corporate responsibility and the impact of personal and political beliefs on company practices and public perceptions.
As Hims & Hers navigates the fallout from these comments, the broader implications for corporate governance, investor relations, and social responsibility continue to unfold, highlighting the complex interplay between business decisions and socio-political activism.