e.l.f. Beauty's Stock Surges 5.28% Amid Controversial Campaign Ranks 401st in $290M Trading Volume

On August 13, 2025, e.l.f. Beauty (ELF) surged 5.28% with a trading volume of $290 million, ranking 401st in market activity. The stock’s movement coincided with a contentious marketing campaign featuring comedian Matt Rife, whose past controversial remarks have sparked widespread criticism. The brand’s legal-themed ad, starring Rife and drag queen Heidi N Closet, aims to highlight affordable beauty solutions but has drawn backlash over Rife’s 2023 Netflix special, which included a joke about domestic violence. Public reactions on social media emphasize disapproval of the partnership, with users accusing e.l.f. of prioritizing profit over ethical considerations.

Chief Marketing Officer Kory Marchisotto defended the campaign, stating it aligns with the brand’s mission to deliver accessible, high-quality products. However, critics argue the ad undermines e.l.f.’s “Empowering Legendary Females” messaging, with commenters linking the campaign to the brand’s product lineup, such as concealers that could be used to cover bruises. The controversy has led to calls for accountability, with some consumers vowing to boycott the brand. The backlash highlights the growing sensitivity among beauty consumers toward brand values and inclusivity.

A backtest of a strategy involving the top 500 stocks by daily trading volume from 2022 to the present yielded a 3.77% return. The approach, which held positions for one day and rebalanced daily, outperformed a baseline of holding all market stocks without trading discipline. However, the strategy’s reliance on trading volume as a proxy for performance does not account for market volatility or liquidity risks. Analysts caution that high-volume stocks may not consistently deliver positive returns, emphasizing the importance of aligning such strategies with broader market conditions and risk management frameworks.