Nike stock shares and market capitalization plummeted significantly on Tuesday after the athletic titan announced that a controversial former NFL player would be the face of its main advertising campaign.
“Nike just lost about $3.75 billion in market cap after announcing free agent NFL quarterback Colin Kaepernick as the new face of its ‘Just Do It’ ad campaign,” according to The Wrap. “It’s the 30th anniversary of the iconic TV and print spots.”
Market capitalization is the value of the shares of a company’s outstanding shares.
“At the time of this writing, the sneaker company’s intra-day market capitalization was $127.82 billion, The Wrap said. “On Friday, that number had been $131.57 billion.”
Shares of Nike stock plummeted nearly 4% Tuesday morning before stabilizing throughout the afternoon.
Kaepernick is at the center of a heated debate regarding respect for the National Anthem. He started a movement of kneeling during the Anthem in 2016 which he says is to raise awareness about maltreatment of black Americans by police. Several players joined Kaepernick in the protest, and some are still kneeling for the Anthem at the beginning of the 2018 NFL season.
The free agent quarterback, who opted out of his contract with the San Francisco 49ers in August of 2016 and has been jobless ever since, announced his lead role as Nike marketer with a Twitter post on Monday.
— Colin Kaepernick (@Kaepernick7) September 3, 2018
Both the protest and the new Nike campaign have drawn stark criticism.
@Nike for elevating @Kaepernick7 to be its face; the bum was good for 1 season. Conservatives buy sneakers too. Support @newbalance @underarmour or @reebok instead. #boycottNike #IStand,” said congressional candidate Antonio Sabato Jr.
— Antonio Sabáto Jr 🇺🇸 (@AntonioSabatoJr) September 4, 2018
— Larry Elder (@larryelder) September 4, 2018
Nike’s competition had a much better day on the market.
Follow Peter D’Abrosca on Twitter: @pdabrosca
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