Nike remains a poor holding: post-earnings decline, margin pressure from competition, collapsing pricing power, and cash-flow evaporation risk.

The one thing they do n't spend money on is Nike shoes, and that's a good thing. I still get questions about "Nike", and I still do n't like that arrow.

The stock announced its earnings yesterday and is down another 7%. If you look at the big picture, you'll wonder how a company like Nike can continue to decline? Well, the decline in Nike is very similar to the prospect of a labor market rebound that we have been witnessing in a spectacular way, not just this year, but for many years past.

I mean, I got so tired of monitoring Nike that I just started going back to my old notes. The last time I looked at Nike, I literally wrote on December 19, 2025: "More depressing than last time."

In fact, there is so much competition that their profit margins are being hurt. Their ability to price their products is collapsing. Their balance sheet is acceptable, but their cash flow will evaporate in October 2025. That's literally a year from now.

What we are discovering is that Nike is taking a major hit. Even a year ago, Nike Direct had, in my words, appalling numbers. So, discounts were reduced and sales decreased. How is this a good thing?

I wrote here that I am not sure how the sports strategy will save this situation.

As you know, as a digression, it's surprising that a bad company, and we've been observing its poor performance since last October when its stock price was $67, can literally drop another 50%. This is good. This is good.