The 6 billion dollar man is Colin Kaepernick
Posted: Mon Sep 24, 2018 2:21 am
I wasn't sure if Nike's decision to use Kaepernick would work, but evidently some people who buy shoes don't feel the same way some people who own football teams. Capitalists need consumers, and the guys buying the sneakers aren't the same guys who are renting luxury suites at the stadium.
Again, the stock market sees the difference between the luxury boxes and the guy on the street, and bets accordingly.
CBS News wrote:The heat Nike has taken over its controversial advertising campaign featuring former NFL start Colin Kaepernick seems to have had another effect: burnishing the iconic brand's appeal to investors.
Nike shares have surged 36 percent on the year, making the company the top performer on the Dow's index of 30 blue-chip stocks. The run-up includes a nearly 5 percent increase since Nike's Labor Day announcement that Kaepernick would be featured in its campaign, adding nearly $6 billion to the company's market value.
The stock continues to hover near an all-time high, which it reached in mid-September only weeks after some Nike customers publicly burned their shoes to express their displeasure at the new ad.
In afternoon trading Nike shares were up slightly to $85.67.
For Nike, the boost eases concerns about the decision to link its brand to the controversial Kaepernick, who in 2016 started kneeling during the national anthem before games to protest racial injustice.
Nike knows its consumer base, which skews younger, said Art Hogan, chief market strategist at B. Riley RBR. "I don't think they just randomly decided to put this ad out, thinking, 'Let's commit political-correctness suicide'."
"People vote with their wallets, and the one clear winner in athletic apparel remains Nike," he said, comparing Nike to Apple in its ability to create demand by rolling out "must-have" products.
Again, the stock market sees the difference between the luxury boxes and the guy on the street, and bets accordingly.