Restoring Shareholder Confidence When Your Stock Is Down  HBR.org DailyView Full Coverage on Google News
Given stock markets’ unprecedented performance during the pandemic years of 2020 and 2021, 2022 should have been even better with recovery from the pandemic and reopening of businesses. But the stock market performance has been exactly the opposite. A few firms losing 60% or more of their value is not an unusual thing — it happens regularly. And it can happen en masse like during the dotcom bust in 2000. What’s unusual about today’s situation is that some of the current orphan stocks — those that have lost more than 90% of their recent stock price peaks — remain market leaders and their products continue to have mass appeal. For example, most of us continue to buy products and services from Netflix, Uber, Gap, Zoom, and Roku. In addition to the challenges of managing day-to-day business operations, managers must take aggressive but thoughtful action to bring back shareholder confidence. The authors recommend several steps to achieve that goal.Given stock markets’ unprecedented performance during the pandemic years of 2020 and 2021, 2022 should have been even better with recovery from the pandemic and reopening of businesses. But the stock market performance has been exactly the opposite. A few firms losing 60% or more of their value is not an unusual thing — it happens regularly. And it can happen en masse like during the dotcom bust in 2000. What’s unusual about today’s situation is that some of the current orphan stocks — those that have lost more than 90% of their recent stock price peaks — remain market leaders and their products continue to have mass appeal. For example, most of us continue to buy products and services from Netflix, Uber, Gap, Zoom, and Roku. In addition to the challenges of managing day-to-day business operations, managers must take aggressive but thoughtful action to bring back shareholder confidence. The authors recommend several steps to achieve that goal.

Restoring Shareholder Confidence When Your Stock Is Down

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