Everyone probably saw the headlines of how Coca-Cola’s shares dropped shortly after Cristiano Ronaldo’s stunt at a Euros press conference last month.
Apparently, he shifted away the coke and said water was better.
Pundits and analysts immediately noticed a slight drop in Coke’s stock price.
We say slight dip, but that is a USD $4 billion drop.
That drop is nearly half the valuation of Grab.
It is something, probably shocking to some, but how did they draw the conclusion that the two events were related?
I could do the same if I notice the price of the water bottle company going up after Cristiano promoted “Agua” and claim its related.
Maybe there is some kind of science and data algorithm at work behind the scene that made someone noticed.
If that is true, I am truly curious on how the plumbing works in such cases.
I think it’s a classic case of correlation vs causation.
Cristiano removing the coke bottles and Coke’s shares dipping may be correlated, but to say that one caused the other, is another thing altogether.
And just to be clear, Coca-Cola’s shares were priced at US$56.10 before Cristiano’s stunt and US$55.20 after.
Today, its has risen up to US$57.06.
Do we know why? Is there a logical causation?
Did Cristiano gave it more attention and attracted more people to buy more coke?
Give it a think.
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