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Valuetainment

"Bad Leaders DESTROY Companies" - Target Loses $12B & Stock CRASHES After CEO SHOCKING Exit

23 Aug 2025

Transcription

Chapter 1: Why did Target's stock plunge after the new CEO announcement?

0.031 - 24.063 Patrick Bet-David

When you think about what happened with Target, Target stock plunges 7% as the new CEO picks. New CEO pick disappoints Wall Street. There won't be change when change is needed. This is page 16. Rob, I want to combine this with Walmart together, Rob. And then, Tom, I'm going to come to you, and I think you're going to be ready for this one. All right, so let's do this one here.

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24.164 - 45.951 Patrick Bet-David

Target shares up 7% to 98% after naming chief operating officer Michael... Fidelke as CEO effective February 1st, 2026, replacing Brian Cornell, who said there is no one better suited to move Target forward than Michael Fidelke. But investors expecting an external hire were disappointed. Gerald Storch, former Target vice chairman and ex Toys R Us CEO, told The Post.

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45.931 - 67.826 Patrick Bet-David

This guy's apparently got credibility. He's the ex-Toys R Us CEO. The stock price reflects that there won't be change when change is needed. Fidelke, 20-year veteran at Target, responded during an internal meeting saying there are no shortage of critics out there today. The way to prove these critics wrong is with action that leads to results.

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67.846 - 84.477 Patrick Bet-David

Target reported a 1.9% decline in same-store sales for the second quarter, ending August 2nd, 2025, with customer transactions down 1.3%, and average spending per transaction down 0.6%, despite beating Wall Street earnings estimates. Fidelke noted on a post-earning call, now we need to move

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84.457 - 107.171 Patrick Bet-David

More of those examples across the category, but they can give me a ton of confidence that we're on the right path here, citing improvements in home goods like Disney and Marvel. Now, while this is happening, folks, the complete opposite is happening with Walmart. Walmart wins over more shoppers. as tariff push prices higher. Those are two separate stories.

107.512 - 109.436 Patrick Bet-David

Rob, is this a tariff story or the Target story?

109.456 - 111.24 Adam Sosnick

This is Walmart and the tariffs.

111.26 - 113.966 Patrick Bet-David

Okay. Did you have the Target story as well?

Chapter 2: What factors contributed to Target's decline compared to Walmart?

113.986 - 134.982 Patrick Bet-David

You had a clip on Target? Yes. Is this the pastor? This is the pastor. Okay, so CNN does a story on this one pastor. I don't know if you guys remember this or not. And this actually became a very big campaign that this black pastor was driving, saying black Americans spend $12 million a day at Target, but Target doesn't listen to us. Watch this clip. Go for it.

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135.002 - 137.786 Unknown

Let's be honest. When you started this, there were naysayers.

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137.866 - 163.875 Jamal Bryant

There were people who didn't believe the fast would work. Yeah. Where we are right now is the stock has plummeted. The valuation has dropped by $12 billion. Foot traffic is down by 7.9%. The former CEO's salary was slashed by 42%, and now they got a new CEO. What have you learned through this process about the interaction of Target and this community in particular?

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163.895 - 183.817 Jamal Bryant

Well, this is the most effective and sustainable boycott for black people in 70 years since the Montgomery bus boycott. And so it was not muscle memory. We had to teach a new generation on the sustainability of unity and that you don't see it overnight. But it's a protracted process.

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184.038 - 194.13 Unknown

Look, if you didn't know, we, a lot of people, especially black people, love Target. In fact, they gave it a nickname of Tarjay at some point. What was that like trying to convince folks out there to give it up?

194.11 - 215.055 Jamal Bryant

Knowledge is power. The Bible says people die from a lack of knowledge. When black people understood that we spend $12 million a day at Target, and I couldn't think or find one black company that earns $12 million a day, people began to have the light bulb go off and say, I can't spend my dollars where I'm not getting dignity.

216.52 - 241.903 Tom Ellsworth

Tom, thoughts? Well, there's three things here. First, Target in 2023, they go back. They had a CEO that came from the outside world, didn't grow up in Target. He was there 10 years. The first five got kind of rough because, boom, suddenly he's in COVID. But as it came out of COVID in 2023, he went DEI crazy and was putting all of these trans kids bathing suits for six-year-olds. Talk.

241.883 - 250.797 Tom Ellsworth

Yeah, that contained instructions and said they were tuck-friendly. So tell your six-year-old boy, don't worry about this little extra equipment you came with. We're just going to tuck it in here.

Chapter 3: How did the DEI backlash impact Target's market value?

250.997 - 274.356 Tom Ellsworth

Mommy, you're hurting me. And so you had that, and everybody freaked out. And meanwhile, there was also these churches that were looking at it and saying, wait a minute. We don't think this is dignified. And it wasn't a weekend service. This has been multi-year and it's been very effective. It's been over two years that this has been working. And what they do is target fast.

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274.456 - 289.267 Tom Ellsworth

For those of you that don't know what the word means in this category, when they say a fast, it's like you will fast from something, meaning you will abstain from it. Hey, I'm fasting today. except water on Friday, and I'm having a day of reflection and prayer. So you're fasting from food.

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289.568 - 310.943 Tom Ellsworth

So when you see those signs that say Target fast, it says time to fast from Target, meaning abstain from Target. It's been very, very effective. Meanwhile, when all of this went down, what did Walmart do? Hey, remind them that we're from Bentonville, Arkansas. Remind them what we stand for. And Walmart said, guess what?

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311.483 - 332.71 Tom Ellsworth

We are seeing customers switch to other items that are affected or not affected by tariff. But we will continue to absorb some of the cost of tariffs to keep price hikes below national retail averages. In other words, we're going to try... With the tariffs, with all the inflation and everything, we're going to see if we can get our price increases to be lower than the national average.

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333.011 - 359.138 Tom Ellsworth

So we're trying to help the consumer more. And they went back and they doubled down on who they were, which was America's big box retailer. And so Target takes the L. What do they do? They say, hey, we have a great idea. The COO who's been here, who's part of this executive team, we're going to put him in charge. And he's been around forever. It's like, what? What? It's like I have two kids.

359.278 - 360.78 Tom Ellsworth

Let's say I got two 15-year-old sons.

Chapter 4: How did Walmart manage to thrive during Target's downturn?

361.12 - 372.728 Tom Ellsworth

They're both delinquents. One of them breaks a bunch of windows in the neighborhood. And then we say, that's OK. This is what I'm going to do. My other son is going to be president of Neighborhood Watch. That'll work. Wait a minute.

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373.188 - 396.664 Patrick Bet-David

He was running with the- That's actually a very good example you're using there. Yeah, to say the same. Let me ask you, though. Would you bring somebody from the outside in this situation? Would you use somebody internally? Because maybe, just maybe, this guy was the problem. Maybe, just maybe, this guy was part of the issue of being too much of DEI. Now, do we know if this guy, Michael Fidelke-

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396.644 - 400.249 Patrick Bet-David

This guy was the other guy's right-hand guy. Is that what we know? That's correct.

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400.269 - 404.194 Tom Ellsworth

He was the COO. And sometimes I think you have to make the move that Starbucks made.

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Chapter 5: What role did community boycotts play in Target's struggles?

404.595 - 412.305 Tom Ellsworth

Hey, we chose the wrong guy. Goodbye. And we're going to bring somebody from the outside because we want the outside guy to address everybody on the outside.

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412.325 - 431.491 Patrick Bet-David

So what if this guy's the interim guy until they find a guy to get the full-time job? Because, Rob, can you pull up the picture I just sent you right now in text? Here's what happened to the stocks. This is by far the best visual to look at what I'm about to show you. Okay. It's going to show you where Target's stock price was a couple years ago compared to where Walmart is now today. Watch this.

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431.952 - 459.42 Patrick Bet-David

Bingo. The red is Target. Look where Target was in 2022, and look where Walmart was. Actually, look at that number. Target was close to $300 a share. Walmart was at $80 a share. Fast forward to today. Walmart's nearly $300 a share. Target is at $60 a share, give or take. One bad leader can destroy a brand. There was a point people were saying Target's a better product than Walmart.

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459.841 - 479.257 Patrick Bet-David

But you know what? The moment you forget who your customer is, who shops at your place, families... Families who can't afford, this is low and middle income families that are coming to your place. Hell, we would go shop at Target. I'm telling you ourselves, we would go shop at Target. And I'm a Sam Walton guy. But you make decisions like this, you lose them.

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479.378 - 497.84 Patrick Bet-David

The thing that this was a double whammy, Tom, this is the part that was a double whammy. Not only did they lose the family guys by going woke with the whole trans, all that stuff. But you lose the black vote? How do you do that? You lost both of them at the same time? That's what you call double dumb, is what you call it, right? That's right.

497.86 - 520.837 Adam Sosnick

Ernest Hemingway's school of gun cleaning. Adam, thoughts? Go woke, go broke. I mean, that's a similar theme here. I mean, Target is basically the Disney of retail shopping. You know, don't forget where Target, their headquarters is located. Do you know where it is? Minneapolis, Minnesota. Weird. So interesting, the George Floyd situation there at the tip of the spear.

521.318 - 545.135 Adam Sosnick

Meanwhile, you said that Walmart's headquarters is in where? Arkansas? Pretty red state. Somebody call it one of the reddest states in the country. You know, I used to, believe it or not, guys, there's no Walmart in South Beach. So I haven't been to Walmart in years. The only time I actually did spend time at Walmart is when I lived in this beautiful, beautiful town called Addison, Texas.

545.415 - 570.248 Adam Sosnick

I went to Walmart after living in Miami my entire life. I was like, oh, my God, everything's free. Everything. Everything. 92 cents, 44 cents, $1.29. You could buy anything you want. It's crazy. Save that money. There is a Target in Miami Beach, in Miami, that I'll go to from time to time. And I understand why he said that certain people call it Target.

570.289 - 582.143 Adam Sosnick

It is a classier type of shopping experience. But go woke, go broke. How do you think Target is going to... Do you think they're going to bounce back from this, Pat? I don't see Target going out of business or anything like that.

Chapter 6: What leadership decisions did Target make that backfired?

1010.727 - 1038.674 Patrick Bet-David

Can you ask if Target, did Target ever reach out to Jamal Bryant to have a conversation with him? I'm curious. I'm actually curious. Did Target ever reach out to Jamal Bryant? Let's see here. You're asking what the target was? Yes, there was one meeting with Jamal Bryant, target leadership. According to the Guardian, June of 2025, Brian, okay, that's too late though. That's way too late.

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1038.694 - 1056.499 Patrick Bet-David

Yeah, that's way too late. More recently, Brian stated he is open to meeting with Target's incoming CEO, to negotiate a resolution. Target did reach out as evidence at the first meeting with Brian Cornell. However, no further communication has taken place. Brian remains hopeful and willing to meet with a new CEO. Yeah, I don't know.

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1056.519 - 1078.813 Patrick Bet-David

You can officially go to the PBD Podcast Circle on Manect, and you have the option of having three different categories. Category one, you simply get to get the notes for free. You don't pay for it. It's tier number one. Tier two, if you want to be able to comment... and post certain things in there, you can go to Tier 2. Tier 3 is something that you can post videos.

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1078.833 - 1093.843 Patrick Bet-David

You get a bunch of other added benefits for Tier 3. But for some of you guys that want the notes that we're going through, it's free now officially for you. Go to my next circle, PBD Podcast. Find it. Download the app. Go to it. Every single time we do the podcast, you get the notes.

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1093.883 - 1109.683 Patrick Bet-David

You can follow through with us while we're going through all these notes, the addendum, the stories, and some of the stuff that we don't even cover for free. So download Manect. Go to PBD Podcast Circle. You choose to do freemium or comment or videos. Totally up to you. You'll at least get the notes.

1109.663 - 1132.397 Patrick Bet-David

Next, a lot of you guys were asking about we hadn't done a new series of signing the books, schedule, craziness, call it whatever you want to call it. The team came, sat me down. I signed hundreds of books. And here's what we're doing today, as well as the new signed books with the new Valuetainment Red Hats that we got signed here. Anybody that orders the Valuetainment Red Hats,

1132.377 - 1152.425 Patrick Bet-David

You're getting a free keychain. We got two of them right there. One is home team. One is myself. Go ahead and get them. They're signed. Limited edition for these. These are not a lot of them. You can get these signed hats that will be sent over to you. The first five that order the signed copies of either your next five moves or choose your enemies wisely. The sales team will contact you.

1152.445 - 1171.255 Patrick Bet-David

You'll be able to tell us what name you want us to write it out to with a special note instead of just a signature. The first five that place an order, it'll be made out to you. Pick and choose. Order the book. We will personalize it to you, but it's the first five orders. So go to vteamrich.com, place your order, and I think when you order the books, you get four... What do you call it?

1171.396 - 1172.719 Unknown

Bookmarks. Bookmarks.

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