K&L Rock Group / News / Cristiano Ronaldo and his gesture that cost Coca-Cola 4 billion dollars. Or did it?
Cristiano Ronaldo and his gesture that cost Coca-Cola 4 billion dollars. Or did it?
Published by: 17.06.2021 19:04:11"No Coca-Cola, just water!"
This statement made one of the best footballers on the planet famous, mainly because it caused the stock value of Coca-Cola (KO) to plummet. At the same time, the disgust on the footballer's face as he pushes the sugary drink out of the camera's field of vision tells us that he has absolutely no desire to be associated with the brand, despite the fact that it is one of the main sponsors of the championship. No wonder CR is a strong advocate of healthy living, but the move has cost the shareholders of the world-famous soft drink quite dearly.
Or what is it really like?
Articles are flying around the internet about whether the drop from $56.10 per share to $55.22 per share was really caused by the footballer's gesture at Tuesday's Euro 2020 conference. Indeed, that drop meant an almost instantaneous drop from US$242 billion to US$238 billion.
We took a more in-depth look at the case and found some interesting information. Ronaldo did not cause the drop in KO's stock value, at least certainly not to the full extent, although many journalists seized on this possible reason almost immediately.
But according to one of our sources, The Guardian, the stock has fallen in large part because it began for the first time trading ex-dividend, which automatically reduces the value of the stock by the dividend, in this case by 1.6%. It is also important to note that the stock value plunged before the press conference began, as the conference did not begin until 3:45 p.m., while the New York Stock Exchange opened at 3:30 p.m..
Although it is proven that Coca - Cola is not in any way beneficial to health, it is also a ridiculous situation where a footballer deliberately pushes an unhealthy product, but at the same time has unnamed company logos behind his back, which are very far from ethical action, or CSR.
As of today (June 17, 2021), the stock is worth $54.86, indicating that the drop was justified, and now we can only guess to what extent Cristiano Ronaldo may have "contributed" to the drop.
What do you think about this? Is it a good time to buy KO shares? Email us at info@klrock.com
Source:
www.theguardian.com/football/2021/jun/16/cristiano-ronaldo-snubs-coca-cola-billions-wiped-off-drink-giants-market-value
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