June 16, 2021
Cristiano Ronaldo moved 2 Coke bottles out of his way, held up a bottle of water — and said "Agua!" — and $4 billion fell out of the Coca-Cola market value.
That's what it says here in "Cristiano Ronaldo snub wipes billions off Coca-Cola’s market value/Portugal captain rejects bottles in Euro 2020 press conference/Soft drink company’s share price drops by 1.6%" (The Guardian).
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6 comments:
Temujin writes:
"More of this. Coca-Cola clearly had a deal with the people running the Euro 2020. Perhaps they'd have been better off putting multiple Coca-Cola logos behind him rather than chance him drinking it. But there were so many other sponsors listed back there so Coca-Cola tried to one-up them by paying to have their bottles in front of the great Ronaldo and...it didn't work. I love that he shoved it aside, like..."What is this crap? I need water. Give me water." Fun stuff. Couldn't happen to a better Woke corporation. :
Whiskeybum writes:
I note that the title of the Guardian piece states that "Cristiano Ronaldo snub wipes billions off Coca-Cola’s market value…”, implying a direct cause-and-effect impact of this little publicity stunt. Then, in the article itself, the Guardian weasels back out from that black-and-white declaration to something more likely closer to a statement of what is actually known: “Cristiano Ronaldo’s removal of two Coca-Cola bottles during a press conference at the European Championship has coincided with a $4bn fall in the share price of the drinks company.”, the word “coincided” setting the change in tone. I’m not saying that Ronaldo’s actions did or did not have some impact on Coca-Cola’s stock price that day, but is it possible that some other activities out there in the wide world might also have had an impact around the same time? The Guardian doesn’t seem interested in looking into that possibility – it would just dampen the excitement of reporting this bold statement of principal by the world renowned (I guess… I don’t follow soccer and had never heard of him before) soccer team captain!
Also, I can’t make out what brand of “agua” he is holding up in the picture, but Coca-Cola is also in the water business; they own Dasani, Aquarius, smartwater, vitaminwater and several others. So, Guardian, explain to me why some public figure making his preference known for one type of Coke product over another type of Coke product should cause institutional investors to panic and sell shares in an S&SP1000/DJIA company like Coke?
Ron writes: "You don't get to be a world class athlete by drinking a lot of fizzy sugar water."
Seems to me Coke tries to get a free endorsement by getting its product on camera in front of this sports hero. He's right to pointedly disconnect from them.
As for what brand the water is... the photo makes it look as though he's got a bottle with no label. I'd credit him with wanting to promote a good health habit — water drinking — though possibly he'd give that up if he were paid the big money he deserves for drinking a branded product on camera.
Jaime Roberto says: "Monday also was Coke's ex-dividend date, which typically means the share price drops by the amount of cash that it will pay out in dividends. Coke's dividend yield is about 3%, so you would expect the price to decline by 0.75% under normal circumstances."
gpm writes:
"I know, not a site you care about or have any interest in even visiting, but the Daily Caller (which I find more interesting than you do) had a particularly stupid take on this point. Both in the headline and the initial paragraph, the article said that Ronaldo's "snub" had cost the "company" $4B. Of course, it didn't "cost" the "company" a penny. It was the shareholders who, for whatever reason, got a haircut. I won't explicitly speculate on where I would most likely find such economic idiocy."
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