Target Takes $12.7 Billion Hit After Pushing DEI

Since its CEO hailed DEI (diversity, equity, and inclusion) initiatives and a backlash for targeting kids with LGBTQ Pride messaging, Target's stock price hit its lowest level since the 2020 pandemic lockdowns.

Shares hit a low of $133.42 on Wednesday in early trading and has dropped for eight consecutive sessions, its longest losing streak since November 2018, the New York Post reported.

Its market capitalization has seen about a $12.7 billion drop to $61.6 billion Wednesday since CEO Brian Cornell hailed DEI as having been a boon to business.

"When we think about purpose at Target, it's really about helping all the families, and that 'all' word is really important," Cornell told Fortune's "Leadership Next" podcast this month. "Most of America shops at Target, so we want to do the right thing to support families across the country.

"I think those are just good business decisions, and it's the right thing for society, and it's the great thing for our brand."

Cornell hailed DEI initiatives has being a moneymaker.

"The things we've done from a DE&I standpoint, it's adding value," he said. "It's helping us drive sales, it's building greater engagement with both our teams and our guests, and those are just the right things for our business today."

But now it has led to backlash, boiling before June's Pride Month for the LGBTQIA+ community. Calls for Target boycotts on Twitter have been going on since mid-March, condemning pride messaging and LGBTQ clothing for children, and even babies, TheStreet reported.

Target closed at $160.96 on March 17 (topping at $162.43 at 11 a.m. ET that day) since Cornell's remarks and has only closed lower since, including $133.80 on Tuesday.

Notably, Target's Twitter account activity has been virtually nonexistent since October, just days after CEO Elon Musk took over — a sign it might be engaging in its own political boycott.

The Target boycott has also rejected "tuck-friendly" clothing and merchandise from a vendor who sells items with satanic messaging, The Washington Post reported.

Also, new song called "Boycott Target" by Forgiato Blow and Jimmy Levy surged Monday to the No. 1 spot in the iTunes hip hop chart, increasing the surge against Target in a campaign similar to the one waged against Bud Light.

"Attention all shoppers, there's a clean up on every aisle," Blow raps in the opening line. "Target is targeting your kids."

Bud Light infamously used Dylan Mulvaney, a pro-President Joe Biden transgender social media influencer, to help sell its beer in April, leading to a backlash that has seen a campaign rise against the brewer.

Anheuser-Busch's share price has fallen around $13.63 since it closed at $66.57 on March 31, just a day before Mulvaney appeared on Twitter to brag about the personalized Bud Light cans and partnership.

The share price dipped to $52.94 on Wednesday, or more than 20% loss of market capitalization to $91.7 billion.

• Protest Song 'Boycott Target' Tops ITunes Hip Hop Chart
• Bud Light Sales Down 30% as Boycott Grows