Nike closed around 57 dollars, sitting near multi-year lows after a sharp post-earnings selloff. The stock is now down more than 30% from its 52-week highs, significantly underperforming both the broader market and other consumer discretionary names.
From a short-term trading perspective, this level is starting to matter. Most of the recent selling appears event-driven, and price is now consolidating near prior support. Momentum is still weak, but downside pressure looks slower compared to the initial drop.
This is not a long-term thesis. Demand and margin concerns remain. But at current levels, the risk reward for a technical bounce is becoming clearer, especially if the broader market stays stable.
I’m watching closely rather than rushing in.
What do others think, short-term bounce here or still falling?
NKE around 57 dollars, is this a short term bounce opportunity
byu/Visual_Disku instocks
Posted by Visual_Disku
11 Comments
Nike isn’t a worthy investment in my opinion. I’m a big stickler against investing in clothing/fashion anyways. It’s too fickle and reliant on trends.
Now I’m not saying Nike is just a trend because the brand is legendary and is up there with Coca Cola and Apple, but the odds it goes back up to $160 is really low.
If you are a fan of turn around plays I could see it being a good choice, right now though it still has a lot it needs to show before it goes anywhere.
Nike closed there selling model and as a result other brands (with better products) emerged to fill the gap. They have to reinvent themselves to surpass the competition which is possible given the brand name but also more difficult as other brands can just copy quickly.
It’ll be $60 really soon and $65 in less than three months.
You must be LULU to buy this
No.
Short term is *Nay* due to risk factor. Don’t see consumer spending skyrocketing anytime soon.
It looks like NIKE just hit capitulation and may signal a short term buying opportunity. Normal volume for NKE is 17 million for this stock and on 12/19 it hit 107 million. Looking back over the past 5 years this has happened a few times on its continuous ride down and each time it had a nice bounce back over the next couple weeks. However, after a 20-30% rise, the falls continued and kept hitting newer lows. The P/E ratio is still too high at 33.6 which means it has more room to fall. If you do open a position, I’d watch it closely and set a stop loss or if it does rise, take your gains and get out quickly.
Nike used to be dominant but now older competitors and even some new recently established competitors have taken a lot of market share from them. I don’t think Nike will ever be the same dominant company we used to see it as. There is just too much competition and they seem to have lost their innovative advantage. They will still be a big brand but nothing like what we have seen before from them.
I think long-term it will get back up there with the new CEO, but he’s still doing the same constant reorganization and constant firing that the previous CEO was doing, which is causing internal moral issues. I get the impression there’s a lot of quiet quitting in the organization / waiting for better opportunities to come along.
The new CEO also fired the Converse CEO who was only in the role for about a year and was trying to turn things around and replaced the Converse CEO with a Nike guy. I don’t think Nike knows what to do with Converse (not that they ever). They only know that Chuck Taylor is too much of a money maker to give up.
Overall I’d say it’s a long term buy, but there’s the opportunity cost of not being in better performing stocks. If you don’t want your portfolio to be nothing but tech and AI, I think it has a place.
Everyone looks for “bargains” in the stock market.
Fact is, stocks well off their highs typically underperform for extended periods. Take a look at LULU for example.
The reason is simple. All the folks like you who thought it was a “bounce opportunity” are still waiting for that bounce. Most of them are underwater and will be more than happy to get back to break-even and dump their shares. This is overhead resistance, and it faces every stock trying to make a comeback.
Cheap stocks are cheap for a reason. The strongest stocks are at or near all-time highs.
I agree with short term thesis. It’ll bounce. I also agree with most comments on here saying this is a bad investment. However I think the two can co-exist and that’s what a lot of people on here are having a hard time grasping. I have a small position that I’m looking to sell ITM covered calls on around 65ish.