Summary: OVERPRICED
Score: 5/20
MOS: 0%
Share Price: $188
Sticker Price: $0
What do Constellation Brands and Gary Vaynerchuk have in common? Well, Constellation just announced on 7/1 that it will buy Gary’s direct-to-consumer wine company, Empathy Wines.
As some of you know, Gary is all over social media and Youtube. One of the top influencers today. Some people love him and some people well… find him a little annoying. Regardless, he’s built multiple successful brands. This acquisition of Empathy is a definite level up for Gary. Good for him. I did a little homework and the acquisition price has not be revealed. Let’s keep our eye’s on this.
What can we learn from this? We all know restaurants have been hit hard due to COVID-19 which means sales for most alcohol brands will be down. The solution to this problem is to sell alcohol direct-to-consumer. Constellation has made a great move here but as you can see, buying Constellation at $188 with a sticker price of $0 is NOT a smart move. At best, move this stock to your watch list.