Is There a Direct Link Between Ronaldo’s Move and Coca-Cola’s Market Value Drop?
WhatsApp had spread a viral rumor claiming that Cristiano Ronaldo’s preference for water over Coca-Cola during a Euro 2020 press conference led to a significant market value drop for the soft drink giant, citing a $4 billion loss. However, this claim is far from accurate, as many experts have debunked the rumor and provided evidence to support this.
The Misconception: A New Theme of Fake News
The drop in Coca-Cola’s share price was anticipated before Ronaldo’s press conference and had nothing to do with the incident itself. In fact, Ronaldo’s decision to prefer water over Coca-Cola was seen more as a positive example of health awareness rather than a financial downfall for the company. Experts suggests that Ronaldo’s actions were more of a marketing stunt rather than a genuine financial impact.
An In-Depth Look at Stock Performance
On June 14th, 2020, during Ronaldo’s Euro 2020 press conference, the stock price of Coca-Cola indeed dipped from $56.16 to $55.55, resulting in a reduction of approximately $4 billion in market value. However, this decrease was already occurring before Ronaldo’s press conference and was unrelated to his actions. The stock was already in a downward trend leading up to this date, and it remained within this range afterward, suggesting no significant impact from Ronaldo’s choice.
Technical Analysis of Stock Market Movements
Looking at the stock price movements, it is evident that Ronaldo’s actions were not the primary driver of the market value drop. Between early May and June 14th, the stock price oscillated around $56.16, indicating a pre-existing downward trend. By 3:45 PM CET on June 14th, which is 9:45 AM in New York, the stock price had already dropped to $55.25, indicating a downward trend well before Ronaldo’s conference. By the end of the day, the stock price had risen to $55.55, showing a recovery after the conference, further debunking the rumor.
Marketing Strategy and Long-term Impact
While Ronaldo’s preference for water over Coca-Cola may not have had an immediate financial impact, it did serve as a marketing opportunity. Ronaldo’s actions were seen as a positive health message and an endorsement of water, which some experts believe could influence consumers’ long-term perceptions. In contrast, a relocation to Pepsi, as mentioned in the joke slide, would likely be viewed as a bold move that could significantly boost Pepsi’s market value due to Ronaldo’s immense influence.
Conclusion
In conclusion, the myth of Ronaldo’s press conference causing a $4 billion market value drop for Coca-Cola is simply that—a myth. The stock price movement was already in a downward trend, and Ronaldo’s actions can be interpreted as a marketing stunt for a healthier lifestyle rather than a genuine financial setback for the company.