The Nike Boycott

Nike (NKE) recently announced that they’ll be using Colin Kaepernick in their advertising campaign. This has upset many people, and there are calls for a boycott. Some folks are even burning their Nike apparel.

That seems a bit unusual to me, but I’ll stay out of the fray. Instead, we can look at the financial aspect of what happens when a prominent company offends/pleases different segments. Shares of Nike are down about 3% this morning. That’s not really that much. Basically, that brings NKE back to where it was a few days ago. There’s something to be said about a brandname that people are willing to burn things they’ve already bought from them.

Let’s look at the long-term. Over the last 31 years, shares of Nike are up 59,632%. In plain English, you would have made about 600-fold on your money following the 1987 crash.

Posted by on September 4th, 2018 at 9:58 am


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