Nike shares stabilize after Kaepernick controversy, Trump slam

Colin Kaepernick Nike Ad 0903

Nike is turning to Colin Kaepernick for the 30th anniversary of its"Just do it ad campaign

- When it comes to making a statement with a powerful marketing campaign, Nike just did it.

The ad has garnered both praise and criticism for featuring Kaepernick, who became a polarizing figure in the NFL after he began kneeling during the national anthem in 2016 to protest police brutality and social injustice. "It is what this country is all about, that you have certain freedoms to do things that other people think you shouldn't do, but I personally am on a different side of it". Sure, Nike's stock price was down about 3 percent Tuesday (their competitor's stocks, including Under Armour and Adidas, also were down Tuesday), but it has risen a bit Wednesday (as of noon ET) and is up nearly 28 percent year to date.

The company confirmed Monday that Colin Kaepernick is the face of one of its most recognized campaigns.

"We are not anti-flag, we are not anti-America, we are not anti-military, we are not anti-government - we are exactly the opposite", Ross said.

Nike shares closed down 3.2 percent Tuesday, the biggest one-day drop since April, but rebounded in trading Wednesday morning as investors shrugged off Trump's tweet.

Kaepernick filed a collusion grievance against the NFL earlier this year alleging that the league's owners had conspired under pressure from President Trump, to keep him out of the league. A lot of folks turned their backs on him, that was very painful, so he went through a whole lot.

Nike's stock took an initial dip after the announcement (so did those of Adidas and Puma), but the company is wagering on long-term success with younger customers.

"They've estimated in the last 24 hours that Nike has had the benefit of $43 million in free media publicity from this", Morgan said. Although he faced backlash during his football career for kneeling during the national anthem, Kaepernick also chose to just do it. "With a strong majority of voters agreeing with President Trump that player protests are unpatriotic, the National Football League is going to have to walk a fine line between allowing player protests on the field and further alienating their fan base off of it". Others burned their Nike apparel and shared videos of it online.

Colin Kaepernick's protest against social injustice in the United States has seen him effectively removed from the NFL.

"Dream Crazy" is the second film of the 30th anniversary "Just Do It" campaign, following last week's homage to Serena Williams.

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