Vivek Ramaswamy Takes BuzzFeed (BZFD) Higher Again


  • Investors in BuzzFeed (BZFD) stock are seeing more green on the screen today with shares up more than 7%.
  • This move comes on news that Vivek Ramaswamy is using his stake in the company to call for job cuts and conservative hires.
  • Here’s why investors may want to consider this move, given BZFD stock’s recent momentum.
BZFD stock - Vivek Ramaswamy Takes BuzzFeed (BZFD) Higher Again

Source: Liebhold

BuzzFeed (NASDAQ:BZFD) is among the media stocks that have come back to life in recent months. Indeed, shares of BZFD stock have surged from a low of less than 70 cents earlier this year to around the $3 level today. This move now puts shares above where they were exactly one year ago, something many investors didn’t think would be possible.

Much of this recent rally has to do with shareholder activism from the likes of former presidential candidate Vivek Ramaswamy. The conservative leader, who has given up his run for the GOP nomination, recently loaded up on shares of BZFD stock. According to recent reports from The New York Times and others, Ramaswamy appears poised to use his 8.3% stake in the company to push for change in the form of job cuts and a more conservative restructuring.

Let’s dive into what exactly is being proposed — and why BuzzFeed stock is surging on the news.

Vivek Ramaswamy Breathes More Life Into BZFD Stock

Shareholder activism is typically non-partisan in nature. Activists may call for board oversight reform, certain actions from management like job cuts (which is the case here), or a strategic shift. In this case, Ramaswamy’s focus on efficiency appears to be largely overshadowed by his push to have more conservative voices on the team.

Hiring the likes of Tucker Carlson or Charles Barkley are ideas the former candidate has put forward in a letter to the company’s board and management team. His view is that BuzzFeed’s journalistic integrity needs to be protected, and that includes diversity of thought. Additionally, Ramaswamy wants three additional board seats, adding pressure to have more conservative voices at all levels of the company.

This issue may be one many investors brush off, with most focusing on the efficiency ideals behind this message. But the fact that the key investor is looking to shift another media outlet’s perspective is a move that mirrors other pushes from Republican and GOP-affiliated individuals.

We’ll have to see how all of this plays out. It’s clear investors are taking a more bullish tone on the company and its ability to survive, after such a massive investment from a businessman-turned-politician. All told, though, I remain skeptical of the recent rise in BZFD stock, as I’m not sure Ramaswamy’s push will be met with affection over the long term.

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On the date of publication, Chris MacDonald did not hold (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 Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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