Cosmetics Co. Stock Hits New Month Low
… After She Sells Her Stake
11/23/2019 1:00 AM PT
The beauty company that bought Kylie Jenner out of her majority stake took a huge hit on Wall Street in what was a bad week for top beauty brands across the board.
Coty shares are plummeting in the wake of the world’s youngest billionaire’s decision to sell her 51 percent stake in Kylie Cosmetics to the conglomerate. After trading closed this week, Coty stocks were down significantly to $11.53, the lowest they’ve been in a month.
While the loss is tough, Coty wasn’t the only major beauty brand to take a hit this week. In fact, 3 of the 4 top cosmetic stocks (Coty included) took significant losses.
It’s interesting … Coty shares did pretty well Monday, moving up slightly to $12.22 after announcing they bought Kylie’s majority stake for $600 million, but that trend didn’t last.
After a brief initial surge, the share price kept trending down, finishing each day this week at a lower figure. Overall, Coty stock is down roughly 5.5 percent since Kylie cashed out.
Many analysts expected a surge after Coty snapped up Kylie — but they got this one flat wrong.
Shareholders might be hurting, but Kylie’s another $600 mil in the black.