Contrary to many recent headlines, Ronaldo´s decision to snub Coca-Cola was not responsible for a $4 billion dip in the beverage giant´s stock price. The incident reveals the importance of critical thinking for business leaders, especially now.
A slew of business publications echoed the thought. Many quoted the Spanish newspaperMarca,which had “analyzed the [Coca-Cola] data from the New York Stock Exchange.” Other outlets simply repeated the message without citations: Some commentators concluded that one man, from a relatively small country, could sink a US multinational. Others praised the taste-making power of influencers, and argued that more companies should elevate them in their marketing plans.
Yet so much of this conjecture was built on a shaky, if not false, premiseThe incident reveals the importance of critical thinking for business leaders, and the reading public, especially now. What else moves share prices?It is true that Ronaldo, in front of the press, declined to drink the strategically-placed Coca-Colas on offer. It is also true that, by the time the press conference was over, Coca-Cola’s value was down $4 billion. However, there were other factors affecting the beverage giant’s stock price.
Some non-alternative facts:Coca-Cola has 4.3 billion shares, and closed on Friday, June 11, with a share price of $56.16 for a market value of $242 billion.On Monday, June 14, Coca-Cola opened lower, at 9:30 a.m. EST.At 9:40 a.m. EST, its stock price was $55.26 (down 1.6%) and the market value had dipped to $238 billion, $4 billion lower than the prior day. headtopics.com
Cristiano Ronaldo moves the Coca-Cola bottles at 9.43 a.m. EST, and says “Água”.It is a fact, then, that Coca-Cola’s market value was already down $4 billion by the time of Ronaldo’s snub. Instead, various factors which have nothing to do with CR7 explain the drop.
For instance, at 9.40 a.m. EST, the whole US stock market was trading low. Ford Motor Company was down more than $2 billion in market value.Stock movements are often too complex to attribute to a single factor. Rather, they are vulnerable to “confounding events” that happen concurrently and whose relationship to each other is blurry.
Another fact: On June 14, Coca-Cola shares becameex-dividend. This technical term is easy to understand. When you own company shares, you receive dividends on certain days. In Coca-Cola’s case, this date was announced more than a year in advance. Once Coca-Cola became ex-dividend, that dividend had already been distributed. Of course, on the day that stocks cease to carry dividend rights, share prices adjust mechanically to a lower number. In this case, the ex-dividend date happened to coincide with Ronaldo’s conference call.
A final fact. From the moment CR7 moved the bottles (9.43 a.m. EST), until the end of the Wall Street trading day, Coca-Cola’s share price went up $0.30, adding $1.3 billion in valuation to the company.Why should we care?Why should we care about the post-truth issue? Because the topic obviously extends well beyond sports and stock markets and can have severe, widespread consequences beyond a dented stock portfolio. Fake news, and cherry-picked information, can arise from simple mistakes made by inexperienced individuals. They can also be sophisticated and deliberate in their attempts to mislead. Lies spread rapidly, especially on social media, and can potentially deceive voters and business leaders, as well as being used to justify government policies. There is a clear danger to individuals, companies, societies, and even democracies headtopics.com
What can we do?The first step is to recognize that we have these biases. Then we must understand how these biases affect how we view news. Finally, there aremethodological steps one can take, to make sure we do not fall into these traps. To start, understand we live in a post-truth world. Do not accept a fact as data. Sometimes, even large-scale data is not enough, because there are issues regarding the quality of the data.
Storytelling is an important tool. And a lively story tends to make an argument more vivid. Still, we must be aware of the dangers of accepting a single story as hard evidence. Read more: Forbes »
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Wonder why CocaCola hasn’t said anything about it … they probably can hire him for Dasani .. agua 💧 Their teams probably own shares in those companies and that's the millions they earn 😂😂😂😂😂😂😂😂😂😂 Removing coke or heneiken is like saying I don't want you in front of me but I will take money made from all the people dying from consuming them.
Coca-cola must learnt that they must stop bullying Sports events with Coca cola... instead promote their own product lineup Minute made... Ronaldo and President Isayas Afwerki are the same in that they want their words only heard, while Messi and PM Abiy are the same they are learning and teaching. Ofc he didnt 😆
Ronaldo's awesome. A big inspiration when I was working on my ball skills while living in Tokyo back in 2006...playing pick-up at Nishi-Ikebukuro kouen and Waseda. Though I was never able to perfect his one shoulder free style move. Try Twitter next time? iamkoshiek People actually believe he moved the price wow
Don't understand this concept '...don't accept fact as data...' this may be how mis/disinformation is given a reality mis/disinformation good article... now since we know informations are manipulated.. how do we know which to trust,even ?
breathMessi21 Wow I already read iamkoshiek 's thread some days ago, so no need to read this here😌 michaelkumbirai Told you! michaelkumbirai 🤝 ELD10SLEO It's just like with film and music how that sends us through different emotions based off the juxtaposition. Or, like the kuleshov affect makes my brains apply one image to the next image, we're built for stories
This makes so much sense. I always felt that $4billion loss claim didn't add up. But then so many have made up their minds after the initial wrong information and nothing is ever going to change their position. Very insightful piece, this. iamkoshiek u said it Hi Harri_Obi What an article
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Spot on - correlation doesn't imply causation. Wonderfully written article Prof. fernandes_nuno 👏🏻👏🏻 Kylie Jenner who has less popularity than Cristiano crashed Snapchat shares but the most searched athlete in the world did not. Maybe he should do a 10 secs video telling his followers not to drink Coca-Cola instead of moving it. We should be able to measure the impact.
This probably had more to do with coke’s fall than him wanting to drink water 😂 hell give him a Dasani (coke owns), but let’s not talk about this disaster 😂 The baby is MISS CHIMERIKA ISIENYI, she has a hole in her heart, she needs a heart surgery, I have contacted the father, The hospital is requesting for 4million naira, please help with LITTLE you can ND RETWEET, 0621863007 GTB (Meshach) Father's contact_09136831857
This is what happened 😂 A very interesting article. At a time when more readers require insight, which insights can you trust? Joshua_Ubeku have u Seen this I have two ideas,the first idea is a self-charging smartphone and the second idea is a vacuum fuel engine. I wanted to know who is interested in investing in these two ideas?(If you know someone who is investing in ideas,please introduce me to them)
I thought he was paid by Coca-Cola to do that🤷🏾♂️
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iamkoshiek Nobody cares about the truth when the lie is more entertaining- c da god. Letter_to_Jack Let people enjoy their delusions 🤣🤣 Cristiano not drink CocaCola in real life also He is mega star so media just use his name for artile . But actually junk food & soft drink r not good for health, if fan & youth follow him its really good example bcoz he is really hardworking & health care, he love himself 👌👍
Cuz it's about drama and not work, the whole sports thing haha, animalistic behavior from suppose humans, clean cut.. The power of press / journalism when misused, spells catastrophe. And they have been doing that to advance certain alternative truth and advocacy. What a sad world we lived in. Boycott Coca Cola as it is an Israeli Product. Stop funding a child killing, women killing non law abiding country. There is no place for Israeli Jewish Terrorism in this world.
No press is bad press, right? You sound bitter lol
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