Nike's Kaepernick stock drop is a mere dip in this year's climb

[mia]

...It was the day after Colin Kaepernick, the former NFL player who kneeled during the US national anthem in protest of police shootings of unarmed black Americans, shared that he would feature among the athletes in its new campaign. The news prompted outrage and calls for a boycott of Nike from those who believe Kaepernick’s form of protest to be disrespectful. The stock plunge erased about $4 billion from the company’s market capitalization.

Sounds like a major crisis for Nike, right? The situation looks much less dire when you put that drop in context.

This year has been good to Nike’s share price. Investors temporarily balked in March, around the time of the very public firings of some top Nike executives over allegations of a toxic boys’ club culture. Stock buyers quickly moved on, even as further complaints emerged. They’ve responded more to the company beginning to regain its footing in the US, where sales had fallen a few quarters in a row. Through August, Nike’s stock climbed more than 30% this year. Yesterday’s dip of about 3% was a relatively minor setback, it appears....

What investors care most about is that Nike continues to sell lots of sneakers. The boycotts and protests over its use of Kaepernick may deliver a brief sting. Still, in the long-term, Nike seems more likely to benefit, attracting the young, racially diverse next generation of Americans it wants as customers, and the move has generated a lot of positive responses. (It’s worth noting, too, that the dip in Nike’s share price could be related to factors other than Kaepernick. Adidas’ stock has fallen as well.)...

https://qz.com/1379671/nikes-kaepernick-stock-drop-is-an-insignificant-dip/

[bearsfootball516]

1. Nike isn't stupid. This is a massive worldwide brand.

They wouldn't have done this if they hadn't spent months of researching the costs vs benefits of bringing Kaepernick on. They knew they would see a very small dip initially, likely followed by a continued rise like they've seen throughout the year as a whole.

This wasn't a decision they just made after getting drunk one night and saying "You know what we should do?"

There was NO WAY they were going to do this unless they were 100 percent sure it was going to work out for them in the long run. And it likely will.

[Bernardo de La Paz]

3. Nike isn't stupid. NFL & Nike know that Grumpy Oldmen Party demographic is not the future. nt

[populistdriven]

2. MAGAites mostly wear duck taped generic garbage anyways

[quickesst]

4. posted this as a standalone...

.... but it seems appropriate here too. Let the boycotter head exploding begin.


https://m.

[mia]

5. Love the ad.

Thank you!

[quickesst]

6. welcome

Commercial is a class act. Kudos to Nike.