Ronaldo’s snub costs Coca Cola $4 billion

MARKET MOVERS

We live in strange times, where influencers from different walks of life can make or break markets

We have seen it all this year — from an army of amateur traders on the social media platform Reddit breaking the hedge fund managers to Elon Musk’s love-hate relationship with premier digital currency Bitcoin on Twitter (causing massive price swings) to the most recent snub by World-renowned soccer player Christiana Ronaldo towards Coca-cola. I think this is a new phenomenon which we are going to see play out more in the future.

Many of the critics of Bitcoin have been quick to criticize the fact that something as fragile as the crypto giant whose price is at the whim of any one person — referring to Musk’s tweets — can’t be considered feasible as a currency or as an asset. However, this assumption is misguided since cryptos have generally been volatile. Also, Musk tweeting for and against Bitcoin might have some other motive as well, considering his company Tesla is one of the biggest holders of the digital asset.

Anyways, the point I wanted to make is that these crypto skeptics should see how billion-dollar hedge funds crumbled in the face of meme stock mania, earlier this year — in traditional financial instruments. If this is not enough, one can see how a little snub by the famous Soccer player Christiano Ronaldo recently caused the soda giant Coca-Cola to lose $4 billion in market cap. So it’s not just Musk & his tweets, and it’s not just Cryptos.

In the latest episode, the Portugal team captain shifted two bottles of Coca-Cola during a press conference (video above) at the European soccer championship. The incident coincided with a $4 billion fall in the share price of the drinks company. Ronaldo followed it by holding up a bottle of water before declaring in Portuguese: “Agua!”, appearing to encourage people to choose that instead.

Ironically enough, Coca-Cola is one of the official sponsors of Euro 2020, but the snub from Portugal captain, who is a renowned health fanatic, caused the soda company’s share to dip 1.6% — with the price dropping from $56.10 to $55.22 (chart above) in the aftermath. With almost 300 million followers on Instagram alone, I am not surprised with the move in Coke’s stock price.

A lot of the younger crowd is taking keen access in financial markets — owing to trading apps like Robinhood which offer zero commission and make trading a breeze. The same crowd is much more active on social media than some of the earlier generations and they see what these mega influencers have to say about certain brands, businesses or other assets. Combined with automated trading these days, we may be eyeing a paradigm shift.

I gotta say though about this incident — Ronaldo’s advice wasn’t bad. Always prefer Water over sugar-packed sodas.

Looking for aspiring writers to contribute to OSX — Contact Us

Source: https://medium.com/open-source-x/ronaldos-snub-costs-coca-cola-4-billion-6ef09841c66?source=rss——-8—————–cryptocurrency