Tuesday, July 27, 2021
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Sports stars like Cristiano Ronaldo have become social media sensations. However, your followers are not something to be taken lightly, as they have the power to influence millions of people with a single post.
Cristiano Ronaldo, for example, has 550 million followers on social media with more than 300 million of these on Instagram alone, making Ronaldo and his Instagram or other similar sports stars a serious force to be reckoned with.
Not only are they being paid millions to promote certain brands on social media, but they are also using their accounts as a way to position themselves on issues like social justice. So it’s no wonder that Ronaldo’s recall of two bottles of Coke during a recent press conference is said to have had a ripple effect on the brand. Did it affect Coca Cola’s stock prices and what happened to Ronaldo and his Instagram afterwards? This is what happened.
Ronaldo “fails” Coca-Cola
Soccer star Cristiano Ronaldo is said to have cost Coca-Cola $ 4 billion as its market value plunged right after the athlete’s gesture. Ronaldo was in the middle of a press conference at the Euro, a tournament of which Coca-Cola is the main sponsor. During the appearance, the soccer player removed two bottles of Coca-Cola from their prominent place in front of the table, placing water bottles in their place, and hinting to the audience that drinking water is better than drinking Coca-Cola while affirming “Agua”, which means “water” in both Portuguese and Spanish.
Ronaldo is known for his healthy lifestyle and for avoiding carbonated beverages and alcohol. Thus, this gesture represented a serious problem for the brand, because not only was it a massive audience watching, but Ronaldo and his Instagram are incredibly influential. Added to this is the fact that Ronaldo’s simple gesture went viral on social media, so we have a disgruntled brand on our hands.
Tim Crow, a sports marketing consultant who advised Coca-Cola on sponsorship of soccer for twenty years, said: “Obviously, it’s not a minor issue for any brand when the world’s most followed soccer player on social media does something like that. “. Crow also added: “Coca-Cola pays tens of millions to be a UEFA sponsor and, as part of that, there are contractual obligations for federations and teams, including participating in press conferences with logos and products. But there are always risks. ”
The famous gesture has made the impact of social networks on brands even more relevant once they appear on an influencer’s social networks or once an influencer expresses his opinion about a brand (good or bad). Ronaldo and his Instagram they are billing more than 40 million dollars per year, since the footballer earns around 1 million dollars per publication, which is more than his annual salary at Juventus.
Crow continued to speak about the latest trends among influencers, saying: “Athletes are taking a more activist view, we are seeing that, most recently at press conferences. And we will see it again ”. This isn’t the first time something like this has happened, and it certainly won’t be the last, so be sure to check financial news on iFOREX to be aware of the last hour that could shake the market.
Coca-Cola share price in the markets
Although the news headlines claim that Coca-Cola’s $ 4 billion market value drop was due to Ronaldo’s gesture, is this really the reason? Some analysts think it might not be, as Coca Cola stock prices had just hit a short-term high before the Ronaldo controversy, so a subsequent drop is not uncommon in markets as prices they can reach levels of resistance.
It is vital to remember that although the news is important, investors are ultimately the ones who influence the markets, so it is important to stay up-to-date with both the news and investor sentiment when trading big brands like the prices of the
s Coca Cola shares.
Invest in Coca Cola share prices using CFDs
The type of price volatility that companies show as in the case of the prices of Coca Cola shares It can present both opportunities and risks for certain traders who invest in CFDs or contracts for difference.
CFDs allow you to take advantage of the price movements in both directions, both rises and falls, of the shares of today’s leading companies without the need to buy the underlying asset (in this case, the real shares).
iFOREX is a leading global broker offering hundreds of instruments in the form of CFDs, including Coca Cola stocks, as well as commodities, indices, ETFs, cryptocurrencies, and foreign currency pairs. In addition to access to the market through the innovative iFOREX trading platform, you can check the financial news on iFOREX to keep abreast of what is happening in the financial world and to be able to make better-informed trading decisions.
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