Nike's Kaepernick Ad Has Cost The Company Over $3 Billion So Far

Since announcing their new advertising campaign will be led by Colin Kaepernick, the social media backlash has dominated the virtue-signaling efforts we presume they hoped for.

With images of Nike apparel and footwear being burned and real sacrifice being discussed, it appears investors are growing disillusioned as NFL fans as Nike shares are down 2.4% in the pre-market.

On a side note, it appears Twitter has decided that snowflakes are just not prepared to see a pair of sneakers on fire and have attached a warning note to the previous tweet...

That is a loss of over $3 billion in market capitalization since the market close on Friday...

(Click on image to enlarge)

Nike may have "just done it" but was it worth it?

If the public backlash against other corporate brand names who have taken a vocal political stance is any indication, Nike faces considerably more pressure: companies from Dick's (which saw a sharp decline in sales after it stopped selling guns), to ESPN, to Papa John's, to Twitter and Facebook, to In-N-Out burger, have all seen an angry customer backlash - from either the left or the right - once these corporations entered the political arena, resulting in a hit to the top line, and ultimately, the shareholders' pocket.

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William K. 1 year ago Member's comment

Thanks for a bit of clarification on the mechanism of dumb moves having serious consequences. I have seen the same elsewhere but the Nike example is far more "public".

PreferredStockTrader 1 year ago Contributor's comment

I will now consider buying Nike for the first time.

Angry Old Lady 1 year ago Member's comment

Me too!

Gary Anderson 1 year ago Contributor's comment

Burning shoes is like burning books. Makes it easy to spot the bad guys. Go Colin!

Dick Kaplan 1 year ago Member's comment

Nike likely chose this campaign specifically because it would be controversial. It will get everyone talking about Nike - lot's of free press.