Nike's sales are declining, and the management team has made no attempt to sugarcoat the situation. They stated that it would take some time before things improved. In the last quarter that has been completed, sales in North America have started to improve, but sales in Greater China are experiencing a really rapid decline.
NKE
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Let's focus on the Nike company chart. It's not encouraging. The stock hit its lowest level in 13 years this morning after earnings were announced late yesterday. It wasn't enough to impress Wall Street.
The company has not succeeded in convincing investors of this transformation strategy, especially given the weakness we are seeing in China, a key market where the company is struggling.
Nike is getting crushed today.
Oh man, Nike, can you believe it is not doing it? As they just said on CNBC, down 8% literally just continues to get crushed. Uh, one of my good friends who writes about trade setups put on an amazing options trade in Nike where you risk 37 cents and it's probably going to make around $2.
Imagine risking 37 cents to make $200 or $370 to make more 2,000. That would be that would be nice.
Nike. Oh, that's Nike. I apologize.
We'll get to Nike, which unfortunately is going down even more.
Now, if there's heavy volume in the pre-market on something like a a Nike, I will use that.
The big one, folks, is Nike. Take a look. You guys saw this a little earlier, but Nike beating on earnings, but missing on revenue and missing on their guidance. They lowered guidance.
So, you can see right there, EPS actual was 48 cents versus expected to be 44. So, they beat by 4 cents on a headline basis. That is actually pretty good. But when you look under the hood of that car, things don't look so good.
Revenue missing 11.21 billion versus 11.32 billion expected. And the key in and this is always the key for every stock is what's the guidance because the earnings and revenue are what happened last quarter.
What's the guidance? And guidance they lowered to 1.15 to 1.35 from a buck 69 that had been expected. So, they lowered guidance pretty hefty.
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.
Nike, NKE, $35. I still have great faith in this stock. This is an absolutely devastated stock. In this case, the forward P is below 20.
And remember, I believe Nike's gross margin and net margin will bounce back incredibly in the next two to three years. And the impact this will have on the company's bottom line is incredible.
And so in my opinion, you will see earnings per share in the next two to three years. I could be wrong. But I think earnings per share will skyrocket.
Nike's stock is among the worst performers in the S&P 500 index over the past year, having fallen by about 50%. It has also declined by more than 44% since the beginning of the year, and bets are increasing that the stock will fall by as much as 6.3 %.
That's a large number of people who are actively betting against a stock with a market capitalization of $53 billion.
One of the companies I follow is Nike, which was, you know, ... There is a well-documented conversation between Warren Buffett and Lou Simpson, who was one of the biggest fans of Nike, about how much he liked it and how great its business was.
I believe its stock price has fallen by about 80% from its peak , and it has lost a few weeks, hitting its lowest levels almost daily. So, it was like a car accident. I check on her from time to time to see where she is .
I don't know how she will recover from here, but I think that evaluating her at some point makes it interesting enough.
I feel that "Nike" is the most prominent example of this. Nike has had a price-to-earnings ratio that is almost forever higher than the market, and this has hurt buy-and-hold investors a lot, because not only have profits declined for five consecutive years, but the ratio has also continued to fall.
Nike is asleep, isn't it? Many questions about this stock are of the type: " Should I add more?" Should I make a covered call option? Should I buy the stock and look to sell the call options?
I received many questions about this . She is asleep. Why would you want to bet that she will wake up? If you know something, that's great. Don't tell me, I'm not allowed to know.
But this is Nike's current situation. She is asleep. There is no excitement, no interest, no media coverage, and no social media-driven optimism or pessimism there. It is very , very difficult to look at Nike and get excited about it.
Now I'll talk about stock number three, which is currently near its 52-week low. That is Nike, whose ticker symbol is NKE. And Nike's stock, one of the most iconic brands of all time, is doing very badly.
It has decreased by 75.9% in the last 5 years. It has fallen another 49.3% in the past year and is near its 52-week low.
This is also why Nike's stock fell sharply at the same time. By the way, Nike is very bad. Just my personal opinion . But I'm sure Dylan Mulvaney is still dancing to that tune .
Now it's Nike. Last weekend or two weeks ago I was at my neighbor's 10- year-old kid's birthday party and this was the talk, people were just asking when Nike was going to turn around ?
So, what is your opinion when looking at a structure like this? Because clearly the trend is very good and there is no reason for short sellers to be afraid. What would be a credible trend change or some kind of bottom for you ?
Every time it has tried to break the 50- period barrier , it has failed miserably. We are so far from the 200- period moving average that all my hair will fall out by the time we get there.
So, what would you say to those who are looking for bottom? Or would you do anything at all with this stock?
Austin, I was speaking frankly about my gradual return to investing in Nike stock after a very long hiatus , because I think they've kind of moved past all those controversial announcements and other things.
I see a strong comeback for the Nike brand among runners and exercise enthusiasts . The Jordan brand has just announced the launch of its new range of gym equipment. Therefore , the "Jordan" brand collaborated with "Nike Strength" to launch a complete line of strength training equipment for home and commercial use.
Nike is one of the strongest brands in the world and historically it has been one of the best performing stocks on the market. It produced over 100,000% returns from its IPO to its peak in 2021.
However, it's now down almost 80% from its all-time highs and the stock is continuing to drop. This has led to many investors wondering if the stock is looking cheap or if there is something truly wrong with the business.
Nike stock has fallen so much since 2022 that it was kicked out of the S&P 500 in September of 2026. This is an iconic company that has showered investor with great returns in the capital return phase for decades.
And it's not like people stop wearing sneakers. So, what happened? And is this a generational buying opportunity for investors? I've been analyzing stocks like Nike for more than 20 years.
And in this video, I'll tell you the three big reasons why the stock is down so much and whether I think this is a broken company or a massive buying opportunity.
If you own Nike stock like I do, or you've been tempted to buy the dip, you need to see this. Nike, one of the most iconic brands on the entire planet, has just crashed to a 12year low.
The stock is down a jaw-dropping 77% from its peak and nearly 40% this year alone.
So, here's the huge question. Is this a rare once in a decade chance to buy a legendary company that's on sale? Or is it a falling knife that could keep on dropping? Let's dig in and stick around because I actually own this one myself and I'm going to share exactly what I'm thinking.
what is going on with Nike stock? Nike is go woke, go broke, you know, just like I'm not going to go in there. Yeah, you know what Nike is, but let's have a look at Nike. Um, I don't know why companies do that.
I don't know why they try I I'm not going to get myself into hot water by saying things that are just so obviously stupid. Yeah, this one. Let's go back. Let's just start looking at the alltime chart.
So, this extremely oversold. Wow. Wow. like literally minus 10 on mean reversion. That's a record record oversold but it's also a turd at doesn't like we're on the monthly time frame here so very big time frame.
Uh and by the way sometimes people think oh it's cheap we should buy it. No sometimes companies are just dead. Let's go look at the financials again. First step for me is always the numbers.
Um, no growth, shrinking, not very exciting. Uh, also no growth. They did have a very big surprise, but that's probably due to some type of accounting irregularity, whatever. Maybe some incurred benefit or whatever, but I don't know.
I don't I don't do I don't do sports. I do AI and crypto. That's it. I'm very single threaded. Um, so Nike I would not touch.
We recently discussed the sportswear industry, looked at Nike, Lululemon, and On, and concluded that ultimately it comes down to customer preferences first, what will be popular that year, what will grow, and what won't grow, and that's very, very difficult to predict.
Something is popular one year, and something else the next year.
and by the way, we also look at MS and Nike, for example,
If we just go over to Nike, sort of same industry, but also very different because it's not um, not a luxury company. Fashion in general is going through a massive shift. The trend cycle continues to speed up.
Trends from 10 years ago are getting recycled and it used to be 20 plus years. I think that's pretty much a good introduction to to Nike because I feel like that's what happens where it's they messed it up once um where they basically got out of the retail stores and they tried they have enough brand power to go DTC um direct to consumer. it didn't work out and since then they're struggling.