Ted Cruz Torches Nike: $200B Vanishes in Stunning Market Crash
Senator Ted Cruz Criticizes Nike as Stock Hits 12-Year Low
What Happened?
Senator Ted Cruz (a Republican from Texas) is speaking out against Nike again. This time, he’s pointing out that the company’s stock price has dropped to its lowest level in 12 years.
Important Point: Nike’s stock has fallen nearly 80% from its all-time high in 2021. That means the company has lost about $200 billion in value!
Why Is Cruz Upset With Nike?
This isn’t the first time Cruz has criticized Nike. The conflict goes back to 2019 when Nike made a controversial decision:
The Betsy Ross Shoe Controversy
- Nike planned to release a special shoe for July 4th featuring the Betsy Ross flag (the early American flag with 13 stars in a circle)
- Colin Kaepernick (former NFL quarterback) reportedly asked Nike to cancel it
- Kaepernick’s argument: The flag had been adopted by some hate groups and represented a time when slavery existed
- Nike’s response: They cancelled the shoe, saying they didn’t want to "unintentionally offend" people on a patriotic holiday
- Cruz’s reaction: He was furious and threw away all his Nike gear
Cruz’s exact words: "For my whole life, I wore nearly 100% Nike for athletic wear. Kaepernick pissed me off, but when they cancelled the Betsy Ross shoe it showed that their marketing plan was America-hate."
What Cruz Said Recently
On social media platform X (formerly Twitter), Cruz posted:
- "Sad & predictable" – referring to Nike’s stock drop
- "Turns out I wasn’t the only one" – suggesting many others stopped buying Nike too
- Used the hashtag #GoWokeGoBroke – a phrase critics use when they believe companies lose money after taking political stands
Others Who Agreed With Cruz
Cruz wasn’t alone in 2019. Mitch McConnell (then Senate Majority Leader, Republican from Kentucky) also criticized Nike:
McConnell said: "If we’re in a political environment where the American flag has become controversial to Americans, I think we’ve got a problem."
He even joked he’d be first in line to buy the shoes if another company made them.
Nike’s Recent Troubles
The Betsy Ross shoe wasn’t Nike’s only controversy. The article mentions other issues:
- Mary Cain controversy – allegations about Nike’s treatment of a young female runner
- Transgender athlete study – accusations of corporate hypocrisy
- Boston Marathon ad – criticized for "pace shaming" and later walked back
By the Numbers: Nike’s Stock Decline
| Metric | Details |
|---|---|
| All-time high | $177.51 per share (2021) |
| Current status | 12-year low |
| Total drop | Nearly 80% |
| Market value lost | ~$200 billion |
| Timeframe | Steady decline over several years |
Summary
Senator Ted Cruz is renewing his criticism of Nike as the company’s stock hits a 12-year low. The conflict began in 2019 when Nike cancelled a Betsy Ross flag-themed shoe after Colin Kaepernick objected. Cruz and other conservatives viewed this as anti-American, leading to boycotts. Since its 2021 peak, Nike has lost approximately $200 billion in market value. Cruz believes the stock decline proves that taking political stances hurts business—a sentiment captured in the hashtag #GoWokeGoBroke.
FAQ
Why did Nike cancel the Betsy Ross shoe?
Nike cancelled the shoe because Colin Kaepernick reportedly raised concerns that the flag had been adopted by white nationalist groups and represented an era of slavery. Nike said they didn’t want to "unintentionally offend" people on Independence Day.
What does #GoWokeGoBroke mean?
It’s a phrase used by critics who believe companies lose money when they take progressive political stances. "Woke" refers to awareness of social justice issues, and "go broke" suggests financial failure follows.
Did Cruz really throw away all his Nike clothes?
Yes! In 2019, Cruz said he "went out & bought brand new shoes, shorts, t-shirts" to replace his Nike gear after the Betsy Ross shoe cancellation.
Is Nike’s stock drop only because of political controversies?
The article doesn’t claim politics is the only reason. Stock prices are affected by many factors: competition, economic conditions, consumer trends, and company decisions. However, Cruz and others believe the political controversies drove away customers.
What was the Betsy Ross flag?
It’s an early version of the American flag with 13 white stars arranged in a circle on a blue field, representing the original 13 colonies. It’s named after Betsy Ross, who legend says sewed the first American flag.