HomeStockHalftime in the Homebuilder Market: Stocks Tumbling – What Next?

Halftime in the Homebuilder Market: Stocks Tumbling – What Next?

As one of the biggest sporting events, the Super Bowl inevitably turns into a battle not only for the most points but also for the best ad slots and the most watched halftime performance. While a strong performance usually brings attention to the performer, the momentary spike in product interest and sales for associated homebuilder and building product stocks isn’t always the same.

In 2020, The Weeknd was the surprise performing artist for the Super Bowl halftime show. While pre-halftime sales and stock prices remained high for home builders and building product stocks, the post-halftime sales and stock prices dropped significantly.

The post-halftime decrease in sales and stock prices is attributed to several factors. Firstly, the high prices of Super Bowl ad spots in that day’s game significantly increased overall ad spending, and some products were unable to recoup their costs before or after the half-time show.

Furthermore, the surprise performer hadn’t released any new material for some time due to the COVID-19 pandemic. This inexperience with the new material as well as the lack of news release and publicity limited the sales potential of any associated products.

The decrease in stock prices was likely due in part to investor and speculator expectations of a material spike in pre- and post-halftime sales preceding The Weeknd’s performance. Yet the pandemic had also resulted in less construction and fewer building products being sold, leading to the stocks’ downward trend.

Ultimately, the halftime show may not be the sales driver it once was. Homebuilder and building product stocks may not have seen the spike in sales and prices that they were expecting following the Super Bowl halftime show, but as the pandemic ends and construction begins again, these stocks may yet see some sort of increase from their current downtrend.

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