Nike has a market cap of $127.8 billion.
NKE stock is down 3 percent as of Tuesday morning, Sept. 4.
As of Sept. 4, over 30,000 people tweeted #NikeBoycott since the campaign was announced.
Nike (NYSE: NKE) selected former San Francisco 49ers quarterback Colin Kaepernick to feature in its new ad campaign, which promotes the 30th anniversary of the brand’s iconic “Just Do It” slogan. The ad campaign features a black-and-white photo of Kaepernick with the headline “Believe in something. Even if it means sacrificing everything.” Kaepernick was the first player to kneel during the national anthem, igniting a storm of protests against racism — and protests against athletes choosing to kneel during the national anthem.
— Colin Kaepernick (@Kaepernick7) September 3, 2018
Nike shares dropped 3 percent on the morning of Sept. 4 as people reacted to the announcement with tweets including the hashtag #NikeBoycott. Others, including athletes LeBron James and Kevin Durant, tweeted their support for Kaepernick and the campaign.
— John Rich (@johnrich) September 3, 2018
Nike Market Cap: $127.8B
In the first 24 hours since the campaign was announced on Twitter, Apex Marketing Group estimates it has generated over $43 million worth of media exposure. On the other hand, the company lost about $3.75 billion in market value as the stock dropped over 3 percent on Tuesday.
So, what does this mean for Nike stock? Opinions are mixed. Matt Powell, a senior advisor with NPD Group, a market research firm, told Reuters, “The alt-right calls for a Nike boycott will fail just like the boycott of Dick’s Sporting Goods failed. Old angry white guys are not a core demographic for Nike.” Neil Saunders of GlobalData Retail told Reuters that the campaign will hurt Nike in some parts of the country. “The company’s stand may go down well on its native West Coast; it will be far less welcome in many other locations,” Saunders said.
One fact potential investors should consider when weighing a decision to invest: Nike doesn’t make many mistakes. On Dec. 1, 2008, the stock was trading at $10.38 per share. Less than 10 years later, Nike stock’s opening price on Sept. 4, even after the controversial announcement, was $79.39.
Nike stands behind its choice. “We believe Colin is one of the most inspirational athletes of this generation, who has leveraged the power of sport to help move the world forward,” said Gino Fisanotti, Nike’s vice president of brand for North America. “We wanted to energize its meaning and introduce ‘Just Do It’ to a new generation of athletes.”
Even after Tuesday’s decline, NKE stock is up nearly 30 percent this year. The category has been on a tear, with competitors Adidas (OTC: ADDDF) and Under Armour (NYSE: UAA) also up, over 20 percent and over 40 percent, respectively, for the year.
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This article originally appeared on GOBankingRates.com: Nike Stock Down With Kaepernick Deal — Should You Invest?