Avoid buying NKE due to severe operational downturn (declining revenue/earnings) combined with an unattractive high valuation.

First, there's Nike. I've reviewed this stock, and each time I decide against buying it. This is partly because I believe it's heading into a very difficult situation. It's a company similar to Disney, with excellent assets and a great brand, but it's not leveraging them optimally to generate profit.

Looking at Nike, the stock price has fallen by 36% over the past ten years—a decade of negative returns. The worst thing about Nike today is that, normally, when you buy a stock in recovery mode, you're buying a stock whose price decreases daily because the stock price is falling while earnings are growing.

But in Nike's case, the stock price is actually decreasing, while the company's valuation remains relatively high because earnings and revenue are also declining.

For example, if we look at revenue, this is what it looks like. These aren't fake numbers; this is reality. Revenue has dropped from $51 billion to $45 billion. Nike is in a severe downturn.

And as revenue falls, so does net income . True. It has risen at times, but overall, over the past five years, net income has declined, which translates to lower earnings per share.

It's difficult for me to buy a stock like Nike, which is in a real crisis. The company has lost significant market share to competent competitors. The value of the Nike brand and Air Jordan shoes is fading.

A new demographic isn't as familiar with the Jordan brand as the older generation was. Jordan no longer holds the same place in the minds of younger generations, and younger shoppers are more inclined to try different types of footwear.

So, Nike is in a very difficult position . Earnings per share are declining, yet the stock price remains high , trading at a premium to alternatives like S&P Global, Netflix, or Uber.

Therefore, in my case, I prefer a company with a lower valuation and consistent growth.