On Tuesday, Nike’s stock shares fell 3% after it released its latest ad campaign featuring polarizing sports figure Colin Kaepernick.
The ad, which could be interpreted as supportive of Kaepernick’s kneeling protest, has garnered support and mustered outrage across social media—with many people’s point of view in line with their political leanings.
While many critical of the ad are predicting (and not without some hyperbole) Nike’s eventual collapse—Wall Street analysts and investors, particularly millennial investors, are snapping up Nike stock.
CNBC host and former hedge fund manager Jim Cramer had this advice about purchasing Nike shares, “This is one where you wait a day and you buy,” he said on TheStreet.com, his website. “Nike’s very good.”
Though a number of investors are selling their shares, Business Insider reports that investors using the Robinhood app are buying Nike stock 300% more than they are selling. Robinhood is a commission-free investment platform with a large millennial user base.
According to MarketWatch, “Nike’s stock has run up 27.3% this year, outperforming the Dow’s 5.0% gain but underperforming rival Under Armour Inc. shares’ UAA, -3.64% 43.8% surge. Over the past 12 months, however, Nike’s stock has climbed 50.2%, Under Armour’s stock has advanced 23.8% and the Dow has tacked on 17.9%.”
Other analysts claim that the sports apparel company’s embrace of Kaepernick is an overall good long-term strategy and shows the brand truly knows its demographic.
“Old angry white guys are not a core demographic for Nike,” said Matt Powell, a senior adviser with NPD Group, told Reuters.
InvestorPlace is even more optimistic about buying shares:
Nike has regained lost market share, reinvigorated growth in its North America business, and turned the corner on profitability declines.
Oh, and NKE stock has rallied 55% over the past year. And, it’s more than 20% above its 200-day moving average, which is about as far above the 200-day as this stock has traded over the past.
Luke Lango, writing for InvestorPlace advises, “As opposed to rushing to buy now while this stock is trading at extended levels, I think the game plan when it comes to NKE stock is simple: just wait for the dip.”