Nike faces stock collapse amid criticism of marketing shifts

Nike has experienced a significant decline in shareholder value, with its stock price dropping from a record high of $163.63 per share to trading below $40, representing a collapse of more than 75%.

Critics attribute this downturn to a shift in corporate strategy, suggesting that executives became disconnected from their core customer base by prioritizing cultural activism over athletic performance. Specific decisions cited include the embrace of controversial political figures in marketing and the cancellation of a shoe design featuring the Betsy Ross flag. Such moves have led to public backlash from consumers, including Senator Ted Cruz, who stated the company's marketing strategy had become hostile to certain American values.