Dudum, who identifies as having a Palestinian background, expressed his willingness to hire these protesters, praising their actions as "moral courage."
In a statement, Dudum said, "Moral courage > College degree. If you’re currently protesting against the genocide of the Palestinian people & for your university’s divestment from Israel, keep going. It’s working. There are plenty of companies & CEOs eager to hire you, regardless of university discipline." He also provided a link for interested individuals to apply.
However, the CEO's endorsement of the protesters did not go as planned. Following his comments, Dudum was met with a wave of criticism from customers on social media, many of whom pledged to stop purchasing his products. Additionally, the company's stock took a significant hit.
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The online sexual health and pharmaceutical company saw its stock drop by 8% on Friday, falling from an opening price of $12.24 to $11.26. The company's market cap also took a hit, opening at $2.62 billion and closing at $2.41 billion. The share price continued to slide in after-hours trading on Friday and Saturday, with trading volume more than double the average for the stock. This suggests that some shareholders were eager to sell their shares. According to the NY Post, the company lost $210 million as a result of the drop.
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The backlash may serve as a signal to Dudum and others that the public is not supportive of the actions of the radical protesters. Many of these protesters have been arrested or suspended, and there have been instances of violence, including attacks on the police and incidents of antisemitism. One of the groups behind the protests, Students for Justice in Palestine, has been sued by October 7 victims, alleging that they are operating as a "propaganda" arm of Hamas.
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Dudum's stance contrasts with the views of other CEOs, such as Palantir CEO Alex Karp, who has been vocal on the matter. Karp said at the invite-only Hill and Valley Forum in Washington, DC, "We’re gonna do an exchange program sponsored by Karp. A couple months in North Korea, nice-tasting flavored bark. See how you feel about that."
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Dudum's comments may prove to be ill-advised. If the protesters are willing to protest their schools and their current jobs, they may also protest his company if it does anything that contradicts their leftist agenda. It appears that Dudum is already experiencing the consequences of his statement, particularly in terms of financial impact.
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One of the co-founders of AdSense noted the exodus of customers, tweeting, "Canceling $HIMS and the customer service queue is 42 people. Guessing it's a big line out the door. The CEO wants to hire the same college protestors who appear hellbent on destroying America."
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This incident serves as a reminder of the potential repercussions of public figures expressing support for controversial causes. As Dudum's experience shows, such endorsements can lead to significant financial losses and damage to a company's reputation.
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