JBS Shares Drop 1.63% in Eighth Straight Day of Declines Amid Governance, Operational Risks

JBS shares fell 1.63% on Thursday, marking an eighth consecutive day of declines with the stock down 15.96% over the period. The stock hit an intraday low of $X.XX, reflecting persistent investor concerns over corporate governance and operational risks.

JBS’s U.S. stock market listing, approved by the SEC in April 2023, has drawn scrutiny amid its history of corruption scandals involving the Batista family. The company’s parent entity, J&F Investimentos, settled U.S. and Brazilian charges in 2020 related to bribing officials and funneling illegal campaign funds. Despite these precedents, the listing was perceived as politically influenced, with JBS’s subsidiary donating $5 million to Donald Trump’s 2025 inauguration shortly before approval. Critics argue the timing raises ethical questions, though proving direct exchange remains legally challenging.

Environmental controversies continue to weigh on JBS’s reputation in Brazil. A recent court decision annulled a $388,000 fine against the company for sourcing cattle from a protected Amazon area, citing outdated legislation. While this reduced immediate financial exposure, JBS faces ongoing lawsuits and accusations from Indigenous groups alleging complicity in land invasions. The company maintains a “zero deforestation” policy but faces criticism for its Amazonian cattle ranching investments, which environmental advocates say undermine conservation efforts.

Corporate governance remains a focal point as the Batista brothers retain significant control through preferred shares, granting them up to 90% voting power post-listing. Their re-election to the JBS board in 2024, despite prior criminal convictions, has raised concerns about accountability. Analysts stress the need for stronger independent oversight to mitigate risks from recurring governance issues. The U.S. listing, while offering access to broader investors, also exposes JBS to heightened regulatory scrutiny, which could pressure the company to address historical compliance gaps.

The NYSE listing presents dual-edged opportunities. While it could enhance JBS’s valuation by attracting U.S. institutional investors, stricter compliance requirements may increase operational costs. The company’s ability to balance growth with ethical reforms will be critical. Analysts suggest sustained investor confidence hinges on tangible progress in environmental accountability and transparent governance, particularly as global markets prioritize sustainability and regulatory adherence. For now, JBS’s stock remains vulnerable to reputational shocks and political backlash linked to its leadership and practices.