You might not know of Karex, but a lot of people use its products.
The Malaysian company is responsible for producing 20% of the world’s condoms, and it exports 5B condoms each year.
Karex stock has been in a long, slow decline since 2016, but at the start of the pandemic, hopes were high that the trend would reverse with everyone bored at home.
Yet its stock is currently down ~60% from its 2020 high. Why?
Partially because condom use hasn’t spiked on a net basis, as hotels and clinics have closed and some governments halted condom handouts.
The company is now pivoting to medical glove-making, which seems reasonable given the state of the world.
Get the 5-minute roundup you’ll actually read in your inbox
Business and tech news in 5 minutes or less