From the World Cup, to the Super Bowl, to the Olympic Games, mega sports events affect stock markets. There is a strong relationship between the company-sponsors of such events and any unexpected turn while holding such happenings. Also, studies have shown that the stocks of companies linked to medal-winning athletes surge right after every success.
The 2020 Olympic Games are being held in Tokyo, Japan between the 23rd July 2021 until the 8th August 2021 (yes, the 2020 games in 2021 – thanks COVID) under extraordinary circumstances.
Unfortunately, there’ll be no spectators enjoying the unique experience and Olympic spirit. Instead, there will just be empty stages and fields, which results in a tremendous economic loss for Japan. What’s more, COVID-19 restrictions, procedures, and COVID-positive athletes keep shuffling the cards.
At all events, viewing both the stay-at-home Games and the Olympics-related stocks is quite intriguing. Already, the Japanese find themselves in the unlikely position of being top of the medals table, leading investors to look for trading angles.
Keep in mind that, as always, the gains can be short-lived, and even the surest thing can be a risky bet.
“The important thing in the Olympic Games is not to win, but to take part...”
“[and]…the essential thing in life is not conquering but fighting well”. Pierre de Coubertin, the father of the modern Olympic Games, summarised the concept of the Olympic spirit in one sentence.
Of course, the Games have become one of the world’s most influential international marketing platforms since first being held in 1896 Athens. On top of that, there is a substantial economic impact for the countries hosting the Games.
The following stocks are linked with the Games and are worth watching throughout the Olympics. But first, let’s see who’s taking part and fighting well and who had second thoughts.
Cisco Systems trades under the ticker CSCO on the NAS.
The global networking giant was announced as one of the Tokyo 2020 Olympic Official Partners in 2016. Previously, Cisco first became an Olympic and Paralympic partner at the London 2012 games. Recently, the networking hardware company announced its participation in the Paris 2024 Olympic games.
Unlike other companies, Cisco does not face a marketing dilemma and continues to provide full support and presence in the Olympics regardless of the exceptional circumstances.
Stocks of the routers, switches, software and services vendor had gained 4.48% over the past month before the Olympics.
Toyota Motor Corp trades under the ticker TM on the NYS.
Toyota engages in the manufacture and sale of motor vehicles and parts. The company signed on as an Olympic sponsor in 2015 as one of 15 global companies that make up the Olympic Partners (TOP) program. This sponsorship program is the highest level of Olympic sponsorship.
However, the Japanese carmaker and major sponsor distanced itself from the Olympic Games, deciding that they will not air Olympics-related TV ads during the Tokyo Games.
The decision comes following frustration and lack of support on behalf of the Japanese public for the games as local COVID-19 infections surge.
Coming into today, Toyota stocks have gained 2.88% in the past month.
All in all, trading stocks is fascinating but, at the same time, requires personal growth and knowing how trading works. At Eurotrader, we share an interest and a common goal – to help you invest in your future self. So be a part of our community and open an account or try our risk-free demo to trade your favourite – Olympic-related or not – stocks.