DEFINITION of Eva Longoria Stock Index
The Eva Longoria Stock Index is a collection of publicly traded companies that are related to actress Eva Longoria either professionally or through endorsements. The theory is that Eva Longoria's support of a company's product or service is capable significantly increasing sales, thereby increasing the value of the company's stock. The Eva Longoria Stock Index was at its apex when Longoria was on the hit television show "Desperate Housewives". The show ran from 2004 to 2012, during which Longoria did product placement within the show as well as celebrity endorsements outside of the show. Some of the companies making up the index during this run include New York & Company, Disney, Microsoft, L'Oreal, Hanes, Pepsi and Bebe Stores.
BREAKING DOWN Eva Longoria Stock Index
The Eva Longoria Stock Index made its way into the financial media as her popularity surged on "Desparate Housewives". The show itself was product placement heavy, and Longoria's appearance in many advertising campaigns during this time made for a robust collection of companies. In 2008, for example, Longoria replaced Jerry Senfield in Microsoft's "I'm a PC" campaign, adding Microsoft to the index. While it was being actively tracked, the Eva Longoria Stock Index did have stretches of outperforming the DJIA between 2007 and 2012. Of course, this is not exactly unexpected as some of the major companies in the Eva Longoria Stock Index are a subset of the DJIA.
The Fickle Nature of Celebrity Stock Indexes
The Eva Longoria Stock Index has declined in popularity as Longoria has moved on from the show that made her a household name. Many of the endorsements given in the show are long past their shelf life in the public consciousness and some of the formal endorsement contracts have expired. This is the fate of many celebrity stock indexes. They pop into the financial media as an interesting way to track the potential impact of a popular public figure and they quietly disappear as that person is overshadowed by the next person to capture the public's attention.
There are many, many other celebrity indexes that have preceded the Eva Longoria Stock Index and many more will follow. Beyonce, of course, has a stock index, but so do stars whose celebrity has since seen a steep decline. These include the Charlie Sheen Stock Index, the Lindsay Lohan Stock Index and the Paris Hilton Stock Index. These indexes are generally abandoned as they no longer provide any actionable insight as the celebrity connection has usually been severed over time. It is an open question whether they had any real value to begin with, as many of the companies being tracked are much bigger and more complex than the single product or service they paid a celebrity to endorse.