Nike Loses BILLIONS In Market Capital Following Ad Campaign Featuring Colin Kaepernick

I assumed that Nike knew what it was doing when it picked Colin Kaepernick as the face of its new ad campaign.

Believe in something, even if it means sacrificing everything. #JustDoIt pic.twitter.com/SRWkMIDdaO

— Colin Kaepernick (@Kaepernick7) September 3, 2018

Surely, they knew it was a controversial move. I can’t figure out why they’d make this business decision, unless they were CONFIDENT that the benefits would outweigh the risks. Surely, they knew outrage and boycotts would ensue, but I think they underestimated the power of conservative boycotts.

The day after Nike made the big announcement, it lost roughly $4 billion in market capital. The Wrap says it’s lost $3.75 billion, but I just saw Fox News report that the number was around $4.2 billion.

At the time of this writing, the sneaker company’s intra-day market capitalization was $127.82 billion. On Friday, that number had been $131.57 billion.

Market capitalization is the market value of a publicly traded company’s outstanding shares.

Markets edge lower. Dow loses 12 points. S&P 500 and Nasdaq dip 0.2%. Tesla sinks 4% on negative Goldman Sachs report. Nike falls 3% after announcing ad campaign featuring Colin Kaepernick. https://t.co/0ruYhO7HPr

— CNNMoney (@CNNMoney) September 4, 2018

We’ll see if this sticks.