Apple CEO and Nike board member Tim Cook spent nearly $3 million to buy Nike's stock after the latest selloff, roughly doubling his stake.
Nike is downgraded from buy to hold due to persistent margin pressure and macro headwinds. Despite double-beat Q2 results and strong North American sales, NKE faces ongoing declines in key international segments and year-over-year EPS. Margins fell 300 bps to 40.6%, and forward P/E remains elevated at 37.7x, limiting near-term upside.
Nike, Inc. remains a Hold, as Fiscal Q2 results and outlook signal neither a compelling buy nor a reason to exit. China's ongoing weakness and aged inventory continue to weigh heavily on EBIT, offsetting North America's resilience. Encouragingly, NKE has halted recent market share losses, and even a moderate top line recovery could drive significant EPS rebound through operating leverage over the coming years.
The last three years have not been kind to U.S. apparel giant Nike NYSE: NKE. As of the Dec. 18 close, shares had dropped approximately 34%, with sales, margins, and profits all down significantly over the same period.
Nike hoped a new CEO could get its stock rising again. So far, the change just hasn't done it.
Jeff Kilburg, KKM Financial, joins 'CNBC's The Exchange' to discuss Kilburg's thoughts on Nike, the overall market and much more.
Nike, Inc. is rated Hold as its turnaround remains incomplete, with further patience warranted before initiating a position. Key challenges include persistent China sales declines, tariff headwinds, and a business model shift impacting margins and growth. NKE Q2 earnings beat expectations, but management guides for Q3 revenue decline and margin compression, emphasizing a gradual, regionally varied recovery.
Nike shares tumbled Friday, despite quarterly profits that topped estimates, as a weaker-than-expected outlook and headwinds in China weighed on sentiment.
Nike's sales in Greater China fell 17% in its most recent quarter. Nike CEO Elliott Hill acknowledged the slump, saying it needs to "reset" its approach to China Experts say Nike is struggling with cultural relevance as local brands connect with young consumers.
Nike (NYSE: NKE) delivered some rather mixed results in its fiscal Q2 2026 earnings report on Thursday, December 18, beating revenue expectations but not doing so great in terms of profitability, which has weighed heavily on the Nike stock.
Nike stock plunged nearly 10% after the sneaker giant reported sliding profits due to an anticipated $1.5 billion hit from tariffs as well as a slowdown in China.
Stock futures are little changed Friday after the S&P 500 and Dow snapped four-day losing streaks yesterday; Friday is the final quadruple witching day of the year, with a record amount of options contracts set to expire today; Nike stock is plunging amid concerns about sales weakness in China; TikTok reportedly has agreed to a deal to give American investors including Oracle a controlling stake; and FedEx earnings handily topped Wall Street expectations. Here's what you need to know today.