Quote:
Originally Posted by Sokz
Yep, three birds with one stone. Public losing of customers a sports/lifestyle brand wouldn't want to be associated with anyway (semi-racist MAGA ****s), some momentum versus its more important groups (international, relatively rich coast-USA, younger people, those who shifted towards Adidas/Yeezy in previous 5yrs) and to top it off by showing they stick with their athletes it ensures they will have a better shot at signing the Serena Williams'es / Lebron's of tomorrow. Simply brilliant.
Quote:
Originally Posted by Malachii
No, intuitively it makes sense and then I saw a tweet from @FondaJLee who apparently worked in corporate strategy for Nike and was saying that their most loyal and lucrative core customers are black kids, but I haven't seen any data that breaks down the demographics. If you find something let me know.
@Formula72: I would think so, I mean at the end of the day they're in the business of selling sneakers. Marketing is everything for their business, the sneakers themselves cost very little to manufacture and they're selling them for hundreds of dollars, so anything that reinforces their marketing credibility and sells more sneakers should impact the stock price.
And Sokz, I agree. I am friends with a lot of Trump supporters. Something they all have in common? They're basically a bunch of racists and they don't watch the NBA or buy Nike apparel. That's anecdotal, but I mean at the end of the day I just don't think a boycott from a bunch of pissed off #MAGAers is going to outweigh the sales boost they'll get from their core customers.
The problem with trying to fade Trump/MAGA is that you have to REALLY parse through the numbers/facts/data to make sure you are correct, because fading Trump/MAGA has been the absolute nut low since 2015 regardless of your opinion of it. For anything politics related, it's really hard to not let emotion cloud your judgment especially when you're trying to find an excuse to fade perceived Nazis and racists.
And the numbers don't support your intuition:
This is my take on it. Trump is about to initiate a 260B+ tariff on China which will be ruinous to NKE's infrastructure because an immovable portion of their supply chain currently relies on the China/SEAN infrastructure. So NKE wants to first and foremost renegotiate with the Chinese government to compensate for the incoming tariffs by taking a firm side against Trump, and possibly get a one time cash grab from the demographics that side against Trump and buy NKE. Longer term, I think they will try to reduce their exposure to China/SEAN.
My guess is that they ran the numbers and decided that loss of sales from the MAGA crowd is not as ruinous as the destruction of their supply chain before they are ready to move it out. Especially so if you can get a one time cash grab from the anti-Trumpers.
Taking a non-serious position in shorting NKE via selling long term calls. Will cover if it moves against me by 100%+.