"Marketing Firm Movers+Shakers Helped e.l.f. Cosmetics Take Off — But Now Questions About The Founders' Alleged Past In NXIVM Are Making Investors Nervous, Even Though They Deny Any Connection To The Group" - RollingStone
Portfolio Pulse from Benzinga Newsdesk
Movers+Shakers, a marketing firm known for its viral TikTok campaigns for e.l.f. Cosmetics, is under scrutiny due to its founders' alleged past ties with NXIVM, a group labeled as a 'sex cult'. Geoffrey Goldberg and Evan Horowitz, the co-founders, deny any connection to NXIVM's illegal activities, stating they only participated in a professional course. Spruce Point Capital Management, an e.l.f. investor, has shorted e.l.f.'s stock, citing concerns over the brand's equity given its association with Movers+Shakers. The report suggests a 45 to 65 percent downside risk to e.l.f.'s share price, although there is no evidence of ongoing involvement with NXIVM by the founders.
November 20, 2023 | 7:26 pm
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e.l.f. Cosmetics faces potential brand equity damage and investor nervousness due to its marketing partner Movers+Shakers' founders' alleged past involvement with NXIVM. Spruce Point Capital Management has shorted e.l.f.'s stock, predicting a significant downside risk.
The association with Movers+Shakers and the negative publicity surrounding the alleged NXIVM ties could lead to a loss of consumer trust and investor confidence in e.l.f. Cosmetics. The shorting of the stock by Spruce Point Capital Management, along with their report, could influence market perception and result in a short-term negative impact on e.l.f.'s stock price.
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RELEVANCE 80