Nike's Woke Obsession: A $20 Billion Stock Crash

Nike's decision to prioritize social justice and politics over its core values has led to significant losses for the company. In 1990, Michael Jordan famously declined a request from a North Carolina Democratic Senate hopeful, saying 'Republicans buy sneakers too.' This advice seems to have been ignored by Nike in recent years. The company became increasingly politicized starting in the 2010s, particularly with its endorsement of Colin Kaepernick in 2018.

The ad campaign featuring Kaepernick generated controversy and media buzz, but also alienated a significant portion of Nike's customer base. A poll conducted after the ads showed that Nike's brand favorability had dropped 34 points. Despite this, Nike continued to double down on its woke messaging during the George Floyd riots in 2020.

The company's decision to hire transgender influencer Dylan Mulvaney in April 2023 was met with outrage from many female athletes who felt that men were invading their sports leagues. The ad celebrating the U.S. National Women's Basketball team's 7th consecutive gold medal was also criticized for its politicization.

Nike's stock has suffered as a result of these decisions, plummeting by 76% over the past five years. In contrast, Asics shares have risen by 687% during the same period, highlighting the potential benefits of focusing on product quality and smart marketing rather than politics.