The stock price of Hims & Hers Health, Inc. dropped 8% after CEO Andrew Dudum expressed interest in hiring anti-Israel student protesters who have faced disciplinary actions from their universities. The company’s stock price went from $12.24 to $11.26 within just two days of Dudum’s statement. Dudum encouraged protesters to apply for jobs at Hims and Hers, asserting that moral courage is more important than a college degree. He praised the protesters for their efforts in advocating for divestment from Israel and said that there are plenty of companies and CEOs eager to hire them, regardless of university discipline.
Hims and Hers has faced backlash for Dudum’s statements, with many questioning the company’s stance on hiring individuals who have been involved in anti-Israel protests. The company has not yet responded to inquiries regarding the sudden drop in their stock price. College students have been rallying for their universities to divest from countries associated with Israel in response to the ongoing conflict in Gaza. Dudum, who has family in Gaza and the West Bank, took a different approach from other CEOs who have either criticized or refused to hire student protesters.
Notably, Palantir CEO Alex Karp made controversial comments suggesting that anti-Israel protesters should be sent to North Korea to gain perspective on their actions. He proposed an “exchange program” where protesters would spend time in North Korea to understand the consequences of their actions. These comments were made at an exclusive event in Washington, DC, where Karp was the featured speaker. Others, like Bill Ackman of Pershing Square Capital Management, have publicly stated that they would not hire students from Harvard who signed a letter pointing fingers at Israel for a past incident involving Hamas.
The response to Dudum’s statement and the subsequent drop in Hims & Hers’ stock price highlights the sensitivity of the issue surrounding the Israeli-Palestinian conflict. As tensions continue to rise both internationally and domestically, companies and executives may face increasing scrutiny for their involvement or stance on political matters. The differing opinions among CEOs on hiring anti-Israel student protesters also demonstrate the diverse perspectives within the business community on how to address societal and political issues. Ultimately, the consequences of publicly expressing support or opposition to controversial topics may impact a company’s reputation and financial performance. The aftermath of Dudum’s statement serves as a reminder of the complexities and challenges that arise when navigating political issues in the business world.
