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"Nike is so smart," Cramer said on "Squawk on the Street, " adding that the sportswear giant is a "calculated company" and is often well ahead of its rivals in knowing what its consumers want.
Cramer, whose charitable trust does not own shares of Nike, said if consumers think the company's new ad is "cool" then it's a win for Nike.
The Dow component was nearly 3 percent lower Tuesday after the former San Francisco 49ers quarterback on Monday tweeted an image from the campaign, saying: "Believe in something, even if it means sacrificing everything."
As of midmorning Tuesday, the hashtag #NikeBoycott was a top trend on Twitter accompanied by photos of some people appearing to burn and rip their Nike shoes and apparel.
While a member of the 49ers in 2016, Kaepernick started kneeling during the national anthem to protest the treatment of African-Americans in the United States, which received mixed reactions.
Other athletes later joined in his protest, sparking a controversy that has been linked to declining television ratings for National Football League games.
President Donald Trump also got involved, blasting on Twitter players who chose to kneel and the teams that supported the players' right to express themselves.
The divisive issue came to a head after the conclusion of the 2017-2018 season.
In May, the NFL banned on-field kneeling during the anthem but allowed for players who don't want to stand to stay in the locker room until the anthem is over.
Despite the controversy, Cramer, host of "Mad Money, " said the athletic apparel giant has a lot of momentum.
The company reported earnings in June that topped analysts' expectations and announced a new, four-year $15 billion share repurchase program.
Cramer predicted that investors who are selling Nike would likely move over to Under Armour.
— CNBC's Christina Cheddar Berk contributed to this report.