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Why Is Adidas (ADDYY) Stock Down Today?

  • Adidas (ADDYY) stock is falling after ending its relationship with Kanye West.
  • This follows controversial comments made by the musician.
  • ADDYY is also dealing with other economic issues hurting its shares.
ADDYY Stock - Why Is Adidas (ADDYY) Stock Down Today?

Source: 2p2play / Shutterstock.com

Adidas (OTCMKTS:ADDYY) stock is falling on Tuesday after the sportswear company cut ties with Ye, formerly known as Kanye West, over controversial comments made by the rapper.

According to a statement from Adidas, the company is severing its relationship with Ye as it doesn’t tolerate “antisemitism and any other sort of hate speech.” This is in effect immediately with the company ending the creation and sale of Yeezy-branded products.

Adidas notes that it will suffer some short-term negatives due to these actions. As a result, the company expects to see a $246 million impact on its net income in 2022. It will give holders of ADDYY stock a more in-depth update when it releases earnings on Nov. 9, CNBC notes.

ADDYY Stock’s Trouble Spreads Beyond Ye

The company is dealing with high inventory right now due to slowing economic interest. As a result, it will likely have to heavily discount many products in its catalog as the cost of profits. That likely won’t go over well when earnings come out.

Adding to that, Adidas has already warned investors about financial issues twice this year. That includes profits coming in lower than expected. It’s also seeing revenue growth slow as interest in its brand wanes in China.

All of this news has shares of ADDYY stock falling 6.7% as of Tuesday morning. Those shares are also down 67.1% year-to-date.

Investors looking for more of the most recent stock market stories today are in luck!

InvestorPlace is home to all of the hottest stock news traders need to know about on Tuesday! A few examples include why shares of Ideanomics (NASDAQ:IDEX), Weber (NASDAQ:WEBR), and Mullen Automotive (NASDAQ:MULN) stock are on the move today. You can catch up on all of this at the links below!

More Tuesday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/10/why-is-adidas-addyy-stock-down-today/.

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