Actress Jessica Alba’s longest-running role has become very lucrative: Shares began trading Wednesday in the company she co-founded, beauty and baby products brand Honest Co.
Interest in the company — which focuses on natural and organic items — swelled during the Covid-19 pandemic. Shares opened at $21.22, above the offer price of $16, which had given the company a valuation of about $1.45 billion based on the outstanding shares listed in its filings.
Alba, who co-founded the company in 2011, is one of many celebrities to pivot to investing and entrepreneurship in the past few years. Gwyneth Paltrow has Goop, of course. Jay-Z owns Champagne producer Armand de Brignac; LVMH’s Moet Hennessy bought a 50% stake in February. Athletes Alex Rodriguez, Colin Kaepernick and Shaquille O’Neal now have special-purpose acquisition companies.
How does Alba’s company stand out from the pack? And now that its shares are available on public markets, does it belong in your portfolio? Here’s an update on the company and the pros and cons of investing in the firm.
How is the company doing?
The firm’s sales have grown, but like many hot startups that have gone public over the past few months, it still loses money overall.
Alba says she founded the company “because I had to.” When she was pregnant with her…