If you were worried about Nike‘s stock after the brand aligned itself with Colin Kaepernick, don’t be. The company’s market value has risen $6 billion since the controversial Kaepernick ad campaign, CBS News reports.
Nike shares are now up 36 percent on the year, leaving the company atop the Dow’s index of 30 blue-chip stocks. This includes a 5 percent increase following the Labor Day announcement of the aforementioned Colin Kaepernick campaign, which has, again, added roughly $6 billion to the brand’s market value.
Nike stock is currently near an all-time high, with shares most recently up to $85.67.
In speaking on the risk surrounding bringing Kaepernick — a former NFL quarterback who began kneeling during the national anthem before games in 2016, in protest of racial injustice — on board, chief market strategist at B. Riley RBR, Art Hogan, said, “I don’t think they just randomly decided to put this ad out, thinking, ‘Let’s commit political-correctness suicide’.”
In short, Nike knows its consumer base, and the bet has certainly paid off.
“People vote with their wallets, and the one clear winner in athletic apparel remains Nike,” Hogan added.
For more on Nike’s market value surge in large part due to Colin Kaepernick, visit CBS News.
Also, we discussed Nike’s Kaepernick ad campaign on a recent episode of ‘The Dropcast.’
- Source: CBS News