Latest / Wicked Radio with Bill Adams / 8-20: Just Blew It! The Most Amazing Thing About Nike's Stock Crash
Transcript
- 0:03Speaker 1: Let me be the first to hope that you haven't
- 0:05Speaker 1: an awesome week so far unless you got Nike stock
- 0:09Speaker 1: just blew it, as they say, now, nothing happened. Now
- 0:12Speaker 1: we'll get into the stock reports and all this other
- 0:14Speaker 1: stuff and figure out why Ted Cruz has taking a
- 0:15Speaker 1: victory lap. Nothing big happened, Like they didn't get caught
- 0:19Speaker 1: stealing money from shareholders, There was no big scandal. They
- 0:22Speaker 1: didn't finally catch him for using Chinese cheap slave labor,
- 0:24Speaker 1: none of that. It's just a remarkable, slow, steady decline
- 0:29Speaker 1: of one of American icon companies that we had out
- 0:33Speaker 1: there and always was considered like a safe, steady stock. Right,
- 0:36Speaker 1: let me just give you a long and short of it,
- 0:38Speaker 1: exactly what happened here. Why people are talking about Nike,
- 0:40Speaker 1: the famous brand. You know, this wash just do it.
- 0:44Speaker 1: They're at a twelve year market low at two now,
- 0:47Speaker 1: a steady decline, two hundred billion dollars loss in market value.
- 0:52Speaker 1: But that's the story. This wasn't one big thing. It
- 0:54Speaker 1: wasn't one big event. It's been a slow, steady decline
- 0:58Speaker 1: since twenty fourteen. Why you probably can pick the reasons
- 1:02Speaker 1: why go woke, go broke, right, But This is remarkable
- 1:06Speaker 1: because the big takeaway on this should be that people
- 1:09Speaker 1: who have had enough of that kind of marketing, when
- 1:11Speaker 1: a company goes completely in the opposite direction of what
- 1:14Speaker 1: their core customer base wants, it has an effect. And boy,
- 1:19Speaker 1: there are some people taking a victory lab today kind
- 1:21Speaker 1: of sort of including me. But anyway, let's figure out
- 1:23Speaker 1: why one of the top reasons why this classic iconic
- 1:27Speaker 1: American company is going down the tubes. Let's figure it
- 1:30Speaker 1: out together as to find a wicked radio in the
- 1:32Speaker 1: live stream replay on the podcast on Action YouTube and
- 1:35Speaker 1: Facebook audio version of the pod. The complete show always
- 1:38Speaker 1: uploaded shortly after the live stream. Let's get right to it.
- 1:41Speaker 1: First of all, CNBC, Oh, the market recap, how is
- 1:46Speaker 1: it doing now? This is bad for everybody. If you
- 1:48Speaker 1: looked at your four oh one K you might have gone, oh,
- 1:50Speaker 1: that's ugly. But one particular company led the downfall yesterday,
- 1:55Speaker 1: and CNBC calls him out by name. Day in the
- 1:58Speaker 1: red for the major averages. The Dow fell two hundred
- 2:03Speaker 1: and seventy two points a half percent, led lower by
- 2:05Speaker 1: shares of Nike. Nobody's rooting for that. Nobody wants to
- 2:09Speaker 1: see the stock market fall. But it's interesting when they
- 2:12Speaker 1: call out a particular company that did a worse job
- 2:15Speaker 1: than anybody else in the stock market. When they look
- 2:17Speaker 1: at the dow led by Nike, that's not good what
- 2:21Speaker 1: we're talking about here. Like I said, at twelve year low,
- 2:23Speaker 1: two hundred billion dollar market loss, they've lost eighty percent
- 2:27Speaker 1: of their value since twenty twenty one. Uh, what happened
- 2:31Speaker 1: around twenty twenty one? Oh yeah, all of that woke
- 2:35Speaker 1: stuff happened. Now we could go in forever about Colin
- 2:37Speaker 1: Kaepernick and the thing remember just to review because I
- 2:40Speaker 1: can't stand bringing him up again and even talking about
- 2:42Speaker 1: him again. Former NFL player who sued the league won
- 2:45Speaker 1: by the way, I think it was a thirty million
- 2:47Speaker 1: dollar lawsuit, then kept on clamoring and clamoring. Just an absolute, complete,
- 2:51Speaker 1: total grifter. One of Nike's main guys. He was one
- 2:55Speaker 1: of their endorsers, right, but he was the one we're
- 2:57Speaker 1: in the you know, copsure pig socks, and he led
- 3:00Speaker 1: the kneeling thing. You need to well he did something
- 3:02Speaker 1: else he led, you know, mostly internal didn't make a
- 3:07Speaker 1: public statement about it, but former Nike officials came out
- 3:10Speaker 1: and said he was the one that got them to
- 3:11Speaker 1: cancel their Betsy Ross flag sneaker, the patriotic all American
- 3:16Speaker 1: sneaker they were going to release for a July fourth celebration.
- 3:19Speaker 1: Who got him to cancel that? Who caved? Yeah, Colin Kaepernick.
- 3:25Speaker 1: But that wasn't the only thing. And we'll get into
- 3:27Speaker 1: Ted Cruz's victory lap here in just a second. It
- 3:29Speaker 1: was right about that time. This is one of their
- 3:30Speaker 1: viral commercials. This is where they went. This is a
- 3:33Speaker 1: great example of this, the irono. If you're remember seeing this,
- 3:35Speaker 1: because it was if you watch football or basketball, this
- 3:38Speaker 1: commercial aired. It seemed like every single timeout or commercial break.
- 3:42Speaker 1: It was the girl who was walking into high school
- 3:45Speaker 1: and it is a Nike ad and she refuses to
- 3:48Speaker 1: do her paper or her presentation on dynasties, traditional dynasties, Romans, Greeks, whatever. Nope,
- 3:56Speaker 1: she refuses, she says, and she's going to talk about
- 3:58Speaker 1: the kind of dynasties she wants to talk about. Do
- 4:00Speaker 1: you remember this commercial? It was one of their biggest
- 4:02Speaker 1: from that area.
- 4:02Speaker 2: I refused to talk about the ancient history and drama
- 4:05Speaker 2: that's just the patriarchy. Instead, I'm going to talk about
- 4:08Speaker 2: a dynasty that I actually look up to, and all women, dynasty,
- 4:12Speaker 2: women of color, gay women, women who fight for social justice,
- 4:18Speaker 2: women with the jump shot.
- 4:19Speaker 1: Nothing's wrong with all that stuff, but it's the refuse
- 4:22Speaker 1: that's the patriarchy. They started in with the men are
- 4:25Speaker 1: bad kind of thing. More in that customer base for
- 4:27Speaker 1: a second that they thought they had and it turns
- 4:30Speaker 1: out they didn't. And I think the most relevant part
- 4:33Speaker 1: of this whole story was, this wasn't a big crash,
- 4:35Speaker 1: This wasn't some revelation kind of thing. This is a slow,
- 4:38Speaker 1: steady decline where their customer based, their core said enough,
- 4:42Speaker 1: because do you remember what Nike was? Do you remember
- 4:44Speaker 1: the air Jordan's Michael Jordan, right, Bo Jackson, Just do it.
- 4:48Speaker 1: And their female athletes too, the female soccer players, I
- 4:51Speaker 1: think Brandy Chastain. It was great, just do it. It
- 4:53Speaker 1: was about getting it done, no excuses, and then it
- 4:56Speaker 1: turned into then it turned into the ideology and the
- 4:59Speaker 1: agenda everything they pushed. That's why people like Ted Cruz
- 5:03Speaker 1: are taking a victory lap. Why is Ted Cruz talking
- 5:06Speaker 1: about Nike? Well before that, even market recap came out. Yesterday,
- 5:09Speaker 1: the senator from Texas came out and he said in
- 5:12Speaker 1: an ex post, which is getting a lot of attention.
- 5:15Speaker 1: By the way, I like when people I like when
- 5:17Speaker 1: people who are elected representatives kind of spearhead the news
- 5:20Speaker 1: because it gets the attention everybody's aware of it. Ted says,
- 5:23Speaker 1: for my whole life, I wore nearly one hundred percent
- 5:25Speaker 1: Nike for athletic wear. Kaepernick pisses me off, but when
- 5:29Speaker 1: they canceled the Betsy Ross shoe and we were just
- 5:31Speaker 1: talking about that, it showed that their marketing plan was
- 5:33Speaker 1: America hate. It's a strong statement from old Ted. I
- 5:36Speaker 1: went out and bought brand new shoes, shorts, and T shirts.
- 5:39Speaker 1: Turns out I wasn't the only one. Now, you may
- 5:41Speaker 1: not like Ted Cruz, I understand that, But like it
- 5:44Speaker 1: or not, he is a national figure with a giant
- 5:47Speaker 1: voice on social media and untraditional media. When he says
- 5:51Speaker 1: something like this, he's representing a lot of people who
- 5:54Speaker 1: feel the exact same way, even if you disagree with
- 5:57Speaker 1: him on most things. And maybe that's you agree with
- 6:00Speaker 1: him on that one. Now you look at the Nike
- 6:02Speaker 1: stock in a twelve year foot free fall, steady steady decline,
- 6:05Speaker 1: no big event. He's not the only one, and the
- 6:08Speaker 1: big takeaway is your voice does matter. But maybe it
- 6:11Speaker 1: wasn't something external. Let's go to reason number two. Maybe
- 6:13Speaker 1: it was their own internal marketing plan and their own
- 6:16Speaker 1: people who took over their company like this lady. Now,
- 6:19Speaker 1: listen to what she says. She was their DEI manager executive.
- 6:24Speaker 1: I guess you could say this is just a PSA
- 6:26Speaker 1: video where she's talking to some high school kids. We'll
- 6:28Speaker 1: get to her in a second. Listen to what she says, I.
- 6:32Speaker 2: Am currently the global inclusion program manager for a diversity
- 6:36Speaker 2: engagement team, and I literally am hired to make sure
- 6:42Speaker 2: people have a sense of belonging here. It's so fun
- 6:46Speaker 2: because in this space, in this work, it's all about
- 6:50Speaker 2: just behavior.
- 6:50Speaker 1: Change, behavior change. That same lady, by the way, was
- 6:54Speaker 1: convicted and sent to five years in prison for stealing
- 6:57Speaker 1: from the company, but you know, beavior change. So maybe
- 7:01Speaker 1: that's indicative of what actually happened in Nike. Maybe they
- 7:03Speaker 1: were taken over by people like her. It's all about
- 7:06Speaker 1: behavior change. I am here. My job is to make
- 7:09Speaker 1: sure everybody feels included. Well, it's not about you, it's
- 7:13Speaker 1: about your customer base, which you abandoned. Maybe that's another reason.
- 7:16Speaker 1: Maybe that's number two why Nike has crashed. I think
- 7:19Speaker 1: the biggest reason of all, though, is this. They planned
- 7:23Speaker 1: on this entire thing. Now, why would they even do
- 7:25Speaker 1: this right? They overestimated what their core value, what the
- 7:28Speaker 1: core base was. I remember as a kid being Nike
- 7:31Speaker 1: was the coolest frickin thing in the world. To get
- 7:32Speaker 1: a Nike sneaker. It was amazing. It was awesome quality stuff,
- 7:35Speaker 1: and I actually believe it or and I still think
- 7:37Speaker 1: they make good stuff. But all of a sudden it
- 7:39Speaker 1: became a punchline where normal people like you, they said,
- 7:43Speaker 1: I don't really want to I don't want to deal
- 7:45Speaker 1: with that thing. There are other brands out there. While
- 7:47Speaker 1: their market share slipped, there were other brands that popped
- 7:50Speaker 1: up that were just as good and not as expensive
- 7:52Speaker 1: as Nikes, hundreds of dollars for air, Jordan's and all
- 7:55Speaker 1: that stuff. But they counted on all of these, all
- 7:59Speaker 1: of these girls, like the commercial, I'm not gonna support
- 8:01Speaker 1: the patriarchy, I'm not gonna talk about white dynasties, I'm
- 8:04Speaker 1: not gonna do all this. They counted on that being
- 8:07Speaker 1: their new customer base. I don't care who you are.
- 8:10Speaker 1: As a company that will never work long term, in
- 8:12Speaker 1: this country. It won't. It'll get a lot of noise,
- 8:15Speaker 1: but that's never gonna work. Case in point, this was
- 8:18Speaker 1: a video that went viral in late twenty twenty three.
- 8:21Speaker 1: This is a pro Palestine, anti Israel girl talking about
- 8:26Speaker 1: boycotting all kinds of companies. What do you get to
- 8:29Speaker 1: the end what she says, she includes Nike in this.
- 8:32Speaker 1: She's screaming in front of the flag, all the other stuff.
- 8:35Speaker 1: This was the person they counted on as the customer base,
- 8:37Speaker 1: and it still didn't work.
- 8:38Speaker 2: Telly Coca Cola, Pizza, Hut Burger, King, Pepsi, Domino's, Papa John's,
- 8:46Speaker 2: Nike servant.
- 8:48Speaker 1: Now she's at a free Palestine rally, you know, calling
- 8:51Speaker 1: on the boycott of all those companies for I guess,
- 8:54Speaker 1: I guess because they supported Israel or something, whatever the
- 8:56Speaker 1: hell the reason was. But Nike was specifically included in
- 8:59Speaker 1: there in her call for a boycott along with those
- 9:01Speaker 1: other companies. The video went viral because the end of it,
- 9:04Speaker 1: they focused in on what she's wearing. She's wearing Nike shoes.
- 9:09Speaker 1: It's just hypocrisy, cluelessness, of course, but that's who this
- 9:13Speaker 1: company counted on. That's I think the main reason. That's
- 9:15Speaker 1: the customer base this company counted on to actually support
- 9:21Speaker 1: their company. That's never ever gonna work when you go
- 9:25Speaker 1: against traditional normal values and you completely go away from
- 9:29Speaker 1: your customer base. That's why people like Ted Cruz and
- 9:32Speaker 1: others are taking a victory lap. But there's other reasons why.
- 9:35Speaker 1: Maybe it's this we talked about Kaepernick. We know that
- 9:38Speaker 1: included in this one and two. She can't He helped
- 9:41Speaker 1: cancel the Betsy Ross sneaker that pissed a lot of
- 9:44Speaker 1: people off. Also partnered with I don't know if you
- 9:47Speaker 1: forgot about this, Dylan mulvany. Now listen, this was Dylan
- 9:52Speaker 1: malvaney was the trans person that kind of sunk with
- 9:54Speaker 1: the bud light commercials and all that other stuff. After
- 9:57Speaker 1: the bud like disaster started to happen, Nike went ahead
- 10:01Speaker 1: and said, Nope, sounds good to us. She's available. Still
- 10:07Speaker 1: went ahead and made Dylan mulvaney a transperson the face
- 10:12Speaker 1: of its workout gear. They tried to become Lululemon with
- 10:16Speaker 1: that person. What paid Dylan mulvaney one hundred and fifty
- 10:20Speaker 1: thousand dollars per Instagram post? Not talking, thank god, but
- 10:25Speaker 1: working out in Nike gear. Do you think that worked? No,
- 10:30Speaker 1: it did not. Also set goals, and this kind of
- 10:32Speaker 1: goes to the DEI manager that wound up going to
- 10:34Speaker 1: jail set goals including thirty five percent US racial and
- 10:39Speaker 1: ethnic minority representation in their corporate workforce, thirty percent at
- 10:43Speaker 1: director level and above. Okay, I'll let you decide. Maybe
- 10:47Speaker 1: that was the main reason prioritized. Of course, as we
- 10:50Speaker 1: all know, LGBTQ plus initiatives brought her cultural signaling and
- 10:54Speaker 1: terminated Kyrie Irving over the vaccine, which was another massive
- 10:58Speaker 1: reason lost his endorsement. You'll hire Dylan mulvaney and Colin Kaepernick,
- 11:05Speaker 1: but here's Kyrie Irving, a basketball player who simply made
- 11:08Speaker 1: a medical choice for his own body and said, I
- 11:09Speaker 1: don't want to take the vaccine. Not only did they
- 11:11Speaker 1: lose money from New York for because he was playing
- 11:14Speaker 1: with the Knicks at the time, Nike just said, oh,
- 11:16Speaker 1: you're going against the grain and we're gonna We're gonna
- 11:18Speaker 1: get red of view. So maybe that's another huge reason
- 11:20Speaker 1: why the Nike stock is failing so badly. So where
- 11:23Speaker 1: do they go right now? Because here's a company that
- 11:26Speaker 1: could have gone in a different direction. That could have
- 11:28Speaker 1: actually realized their mistakes twelve years since twenty fourteen when
- 11:32Speaker 1: this crap started. Twelve years and now they've lost two
- 11:34Speaker 1: hundred billion dollars in market share. Did they learn? I'm
- 11:38Speaker 1: betting no, But maybe they go to their current endorsers
- 11:42Speaker 1: and athletes. Lebron James, you can't really call him woke.
- 11:45Speaker 1: Maybe you don't like him, but you can't. Will they
- 11:47Speaker 1: listen to him? This is him at a recent stock
- 11:50Speaker 1: market meeting talking about Nike and where they need to go.
- 11:54Speaker 1: He says it he's in the company. Will they listen
- 11:56Speaker 1: to him? I think this company's gone so far down
- 11:59Speaker 1: the hill they can't even hear one of their own endorsers.
- 12:02Speaker 3: You got to give back into the roots. You got
- 12:05Speaker 3: to get back to being out in the inner city
- 12:09Speaker 3: having runners how I was when I first, when I
- 12:12Speaker 3: was coming up, you had people with that was literally
- 12:14Speaker 3: out in the communities talking to these younger generations, tell
- 12:18Speaker 3: acts and then what they like, what they don't.
- 12:20Speaker 1: No, that's not done these ways, O Lebron. It's not.
- 12:23Speaker 1: Here's the thing, and here's the main reason. Here's number
- 12:25Speaker 1: one reason of all. Here's a company that said we're
- 12:28Speaker 1: going to tell you what you like, We're going to
- 12:30Speaker 1: tell you what to think. We're going to tell you
- 12:31Speaker 1: what's right and what's wrong, and we're going to virtue
- 12:33Speaker 1: signal the whole way. How'd it work out? Eighty percent
- 12:38Speaker 1: market loss since twenty twenty one? Yeah, twelve year low,
- 12:43Speaker 1: two hundred billion dollars in market share lost. Just do it? No,
- 12:47Speaker 1: you just blew it? Is what you did? Is it recoverable?
- 12:51Speaker 1: I honestly don't know, because I don't think they're even
- 12:53Speaker 1: that company must be just by going by their corporate
- 12:56Speaker 1: makeup and the DEI executive that was convicted of stealing
- 13:01Speaker 1: money from the company in their daily goal. I don't
- 13:03Speaker 1: know how you cleanse a company like that. Now you
- 13:05Speaker 1: look at Anheuser Busch, which is actually owned by MBEV,
- 13:07Speaker 1: a foreign company, believe it or not. Even through the
- 13:09Speaker 1: bud Light thing, they were able to turn things around
- 13:12Speaker 1: quite a bit. We know they got hammered for the
- 13:14Speaker 1: Dylan moulda anything we know for sure, But things have
- 13:16Speaker 1: turned around over the past year and a half for them.
- 13:19Speaker 1: They're not a punchline anymore. They hired Peyton Manning and
- 13:21Speaker 1: Shane Gillis to do their Super Bowl commercials bud Light's
- 13:25Speaker 1: not as bad in this entire time. Have you seen
- 13:27Speaker 1: Nike make any kind of a turnaround culturally? You have
- 13:30Speaker 1: they gone back to just do it and going back to,
- 13:32Speaker 1: like Lebron said, there going into the market, talking to
- 13:34Speaker 1: kids what they want, talking on the customer base, athletes,
- 13:37Speaker 1: you know, weekend warriors like me. Have they have they
- 13:40Speaker 1: gone to them to try to reach out. I haven't
- 13:43Speaker 1: seen it. I don't think they're recoverable. I don't think
- 13:46Speaker 1: Nike is going to come back. If they did, it
- 13:48Speaker 1: would be amazing. But they get a whole lot of
- 13:50Speaker 1: work to do. So there's a company. There's a company
- 13:54Speaker 1: that is the true epitome, even more so than the
- 13:58Speaker 1: bud Light deal with Anheuser Busch, even more o them
- 14:00Speaker 1: bud Light. There's a company that epitomizes go woke, go
- 14:02Speaker 1: broke because they never learned and they've had over a
- 14:04Speaker 1: decade to do it. So sorry, if you have Nike stock,
- 14:07Speaker 1: who could blame you too. It was always one of those,
- 14:09Speaker 1: you know, reliable stocks that it has always done great
- 14:12Speaker 1: in the country. Not anymore.
- 14:14Speaker 3: So.
- 14:14Speaker 1: Here's the takeaway. If you are any kind of investor
- 14:17Speaker 1: or just a citizen, look at these companies that are
- 14:19Speaker 1: willing to learn everybody makes a mistake. I understand that,
- 14:21Speaker 1: and I think would be understandable for any company in
- 14:23Speaker 1: twenty twenty one, with all that crap going on, to
- 14:26Speaker 1: actually kind of reach out to the market, get a
- 14:29Speaker 1: little bit woke, to try to reach out to test
- 14:31Speaker 1: the waters. They never stopped. All they've done, All Nike's
- 14:33Speaker 1: done is dig deeper a hole for themselves and gone.
- 14:37Speaker 1: They've tripled down on going woke. How's it working out
- 14:41Speaker 1: for them? Would they listen to their own athletes like
- 14:43Speaker 1: Lebron Nope? I bet no. So who knows. Sorry if
- 14:47Speaker 1: you're stuck with that stock. But the bigger takeaway is this,
- 14:50Speaker 1: if you never ever once in a while, because it
- 14:51Speaker 1: takes a long time for these stories to happen, and
- 14:53Speaker 1: we get so much information these days, and we're so
- 14:56Speaker 1: add addicted with you know, one headline is in, the
- 14:59Speaker 1: other ones out. Whenever you start to think that you
- 15:01Speaker 1: don't make an impact, forget about politics. Vote with your
- 15:04Speaker 1: dollars if you don't like something that's going on culturally,
- 15:07Speaker 1: taking your dollars away. And obviously a lot of people have,
- 15:10Speaker 1: like Ted Cruz said, with Nike taking your dollars away matters.
- 15:13Speaker 1: It matters big. That's what makes an actual difference if
- 15:16Speaker 1: the company is able to learn from it. Because even
- 15:17Speaker 1: if Nike is too stupid to learn from this, other
- 15:19Speaker 1: companies are looking at this. Believe me, so your dollars
- 15:23Speaker 1: do matter. Who knows? Go woke? Unbelievable? Just blew it
- 15:28Speaker 1: all right. Thanks for having me on Wicked Radio live
- 15:30Speaker 1: stream and the replay. We'll catch up with you tomorrow
- 15:33Speaker 1: on whatever's in the news. We'll be talking about it,
- 15:35Speaker 1: most likely making fun of it, but more importantly replay
- 15:37Speaker 1: a live stream on x and YouTube and Facebook live
- 15:41Speaker 1: every single day eight am ish Eastern Time, and more importantly,
- 15:44Speaker 1: the audio podcast episode always uploaded shortly after the live stream.
- 15:47Speaker 1: Make it a wicked awesome Thursday, getting closer to the weekend.
- 15:51Speaker 1: Just do it.