Kimberly-Clark Shares Drop 30% After Kenvue Merger

Kimberly-Clark shares declined approximately 30% following a merger with Kenvue. The market volatility stems primarily from litigation risks associated with Tylenol, though analysts suggest these risks are already largely reflected in the company's current valuation.

Financial performance for the first half of the year showed modest revenue growth of 1.6%. However, second-quarter earnings dropped 32%, a decline attributed to rising marketing expenses driven by increased energy costs.

Despite the share price drop, the company's dividend yield has risen to over 5%. The merger with Kenvue is expected to drive improved profitability and moderate revenue growth moving forward.