One shoe fail that cost Nike over $1.1 billion in m-cap; here’s what happened and how Twitter reacted
In a curious turn of events, a single failure of a sportsman’s shoe has set back the sportswear giant Nike by a whopping $1.1 billion in m-cap. How, you ask? Here’s all that happened:
In an NCAA basketball contest between Duke and North Carolina, Duke freshman Zion Williamson, a promising candidate in his sport, ripped open his shoes and suffered a knee sprain injury. His ripped Nike PG 2.5 shoes were immediately brought to notice by former US president, Barack Obama himself, who exclaimed that Williamson’s shoes broke. All that happened after is Nike’s nightmare.
Along with the sports star who had to go out of the game because of the injury, Nike faced the brunt of his fall on the field, as its stock fell 89 cents to $$83.95, leading to a market cap erosion of $1.1 billion. The company had said that it is investigating the shoe mishap and wished Williamson a speedy recovery. It added that the event was an “isolated occurrence”.
However, the damage that the company incurred is unprecedented. People questioned the sturdiness of their own Nike pair on Twitter. A user said: “@Nike I’m afraid to wear my Nikes now that I know they explode, although I weigh about half that of Zion Williamson… #ncaa #basketball #Nike
Glad I got the Lebron’s instead of the PGs”.
The Twitterati immediately called out the insufficient safety measures employed by the authorities. Majority of them expressed sympathy for Zion Williamson, and he had public support.