Johnson & Johnson Stock Weathers Trump’s Tylenol Attacks Better Than Kenvue Amid Dipping Retail Confidence — What’s Holding Losses in Check?

Shares of Johnson & Johnson held up better than its consumer spinoff, Kenvue, on Monday after U.S. President Donald Trump linked autism to Tylenol and childhood vaccines, claims that decades of scientific research have not supported. 

J&J shares slipped 1.1% to $174.21 in regular trade before gaining 0.5% after hours. Meanwhile, Kenvue fell 7.5% to a record low at $16.97 before rebounding 4.4% in late trading. 

Guggenheim upgraded J&J to ‘Buy’ from ‘Neutral’ with a raised price target of $206 from $167, which implies an upside of 18% from J&J’s closing price on Monday. Trump’s sharp warnings against acetaminophen, the active ingredient in Tylenol, directly pressured Kenvue, while J&J moved lower more modestly, supported by its diversified portfolio and pipeline updates.

Johnson & Johnson has also remained a defensive play for income investors. The company went ex-dividend on Aug. 26, with its most recent quarterly payout made on Sept. 9, underscoring its steady record of shareholder returns even as sector peers face volatility.

Earlier this month, Josh Brown, CEO of Ritholtz Wealth Management, told CNBC that J&J’s transformation into a pure-play healthcare company after spinning off Kenvue, coupled with a pipeline focused on oncology, immunology, neuroscience, and medtech, is helping steady sentiment. He noted the stock has been “building a base” for years and could be on the verge of a breakout if it clears long-term resistance.

The company also drew attention in the U.S. Psychiatric and Mental Health Congress, where it released Phase 3 data for its investigational depression treatment seltorexant on Monday. The trial showed the drug has efficacy similar to that of quetiapine XR, a frequently used adjunctive therapy, but was well-tolerated with fewer adverse events like drowsiness and weight gain. 

While it did not hit its primary target, seltorexant was still better tolerated as measured by a higher completion rate at week 26, supporting its use in patients with major depressive disorder who are still suffering from insomnia symptoms.

On Friday, J&J also said the FDA approved a subcutaneous induction regimen of Tremfya for adults with ulcerative colitis, making it the first IL-23 inhibitor to offer both SC and IV induction options for UC and Crohn’s disease, which affects about 3 million Americans. 

On Stocktwits, retail sentiment for JNJ, however, was ‘extremely bearish’ amid a 1,720% spike in 24-hour message volume. One user said J&J could still face billions in liability from Tylenol autism suits despite Kenvue assuming primary responsibility after the 2023 spin-off, especially when combined with ongoing talc cases. 

Another user jokingly remarked that with more than 66,000 talc plaintiffs and fresh Tylenol claims, J&J might soon “own the largest law firm in the world.”

Johnson & Johnson’s stock has risen 23.4% so far in 2025.

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