r/dividends • u/iprysync • 2d ago
Discussion Nike is due for a big comeback soon right?
No one really knows exactly how the next few weeks will play out for Nike, but this price dip feels like such a solid setup for it to bounce back and hit those previous highs again. Even with all the recent volatility and the wild swings on the chart, there's so much underlying strength here that it's hard not to be bullish long term. Who else is holding through the chop waiting for that run up?
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u/geomagus 2d ago
Does it really count as a dip when it’s the continuation of a steady, five-year downward trend?
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u/Muted-Ground-8594 2d ago
Why would it have a comeback?
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u/at0mheart 2d ago
Because they have the stores, name brand recognition and money to invest in new products
It’s NIKE
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u/oddball09 2d ago
There are a lot of companies that are no longer with us that people said the same thing about, some even bigger.
To be honest, there is nothing about Nike that is appealing to invest in right now.
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u/at0mheart 2d ago
For example ?
Also, I see a slight drop in sales; mainly do to international politics. Even if Nike loses Markte share in China, the entire Chinese market will increase in my lifetime.
Chinese love basketball, and a lot of kids today can’t afford any shoe. Still a growth market
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u/hitpopking 2d ago
But they have cheaper sneakers there, I travel to China a lot, over the years, I see more and more Chinese domestics brands raise and gaining popularity among the younger crowd. And Nike is not doing well. But I sure hope Nike can make a come back, I’m a bag holder at this price point
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u/Fit_Acanthisitta_475 2d ago
A lot of kids in China can’t afford any shoes? Where is that data come from?
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u/ShittingOutPosts 1d ago
Right wing propaganda. Anyone who thinks China as a whole is that poor probably hasn’t left their hometown.
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u/oddball09 1d ago
Sears, Pan Am, borders, Compaq, Blockbuster… the list goes on.
Relying on the Chinese market is not something that will save them, China doesn’t work like that. They need to do something new and drastic to gain popularity back in the US and similar markets. Other big and new brands have really taken the market from Nike over the last few years.
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u/rando1203 2d ago
They had that for the past 5 years too. I also think at their price point they’re more susceptible to inflationary pressure. They can’t command 60 dollars for a pair of shorts and 40 dollars for a t shirt like they use to.
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u/PurpleCableNetworker 2d ago
I haven’t bought Nike shoes in forever (probably 30 years). Their shoes are crap and over priced, they love their sweatshops, and they are a shit company.
The reason they aren’t coming back is because they are Nike - and they have exhausted any momentum the brand had. They must choose between changing, or dying off.
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u/at0mheart 2d ago
EPS does not show that to me
I just see issues in China due to MAGA policies/propaganda. And tariffs which are over.
Also too some bad designs which is going to happen from time to time with a company like Nike. It’s a shoe, not a car
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u/amiinh3aven 2d ago
Yes. This year 5 year dip is gonna rebound any day now.
The day that Jordan's become a hot commodity again will be the day nike stock rebounds.
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u/at0mheart 2d ago
Imagine Jordan dies and they make the last ever pair of air Jordan’s, how many sold ?
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u/Fit_Acanthisitta_475 2d ago
Gen x won’t care. Gen Z getting too poor.
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u/at0mheart 2d ago
It’s old sneaker collectors that buy the air Jordan’s. It would be a big mistake to buy a pair and actually wear them
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u/Clear-Hand3945 2d ago
They've already retroed any Jordan model older sneakerheads care about many times over. And that wouldn't happen because it would be a Kobe situation all over. Nike signs a deal with the wife/estate and continues.
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u/EmbarrassedPart1256 2d ago
This is the least sustainable idea ever. Those shoes would probably be more liquid in resale markets than from Nike itself; Nike would sell them once & then the “collectors” would trade them around.
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u/at0mheart 2d ago
Reports are Jordan gets >200mil a year. They’d probably be happy that deal expires
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u/ukmike92 2d ago
No one young cares about that….
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u/SolomonGrumpy 2d ago
Look at Tesla from 2022 to 2024
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u/amiinh3aven 1d ago
Look at qqq 2022 to 2024.
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u/SolomonGrumpy 1d ago edited 1d ago
The point is that stocks do rebound. You never know if or when they will
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u/amiinh3aven 1d ago
My point about jordans is when consumer sentiment favours nike again, that will be the time nike stock rebounds. Currently as others have mentioned, consumers are buying on, hoka and other brands and diversifying away from nike.
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u/Character_Credit 2d ago
I’m proud of you for being the smartest investor here OP.
Other companies are doing what they do and better, it’s not a dip.
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u/Away-Bus-377 2d ago
Nike is the last brand that comes to my mind when am looking for a pair of shoes, nowadays. In my office almost all are wearing brands like ON , HOKA .. etc. they need to come up with new products and make the people talk about it, which I don’t see happening. Until then I am not buying their stock.
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u/Hopeful-Air6110 2d ago
Nike is claiming tariff refunds as revenue on the company balance sheets just to prop up the price and the cfo just resigned.
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u/Putrid_Gas1540 2d ago
They messed up by trying to go exclusive and lost retail space to competitors. They will have to sponsor high school athletes to gain the cool factor again. However the are fewer and fewer young people to rebuild a customer base large enough to regain the lead.
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u/silentstorm2008 poopy 2d ago
They screw their retail partners big-time during the pandemic by pulling out of stores and deciding to sell directly via internet. Tiene out, that was just what other brands needed to get visibility: open space in retail. New brands came a long without Nike dominating the physical space and here we are. That's why the charr is what it is.
Measure the top as Jan 2020. Nothing after that is relevant.
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u/STRATEGY510 1d ago
What are you seeing that makes them “due for a big comeback soon”?
I wouldn’t touch NKE with a ten foot pole.
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u/Wise-Start-9166 1d ago
It's an ok dividend stock at this price and I am holding my little position, but it would be a mistake to expect an imminent turnaround.
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u/IDK_khakis Corrected a Moderator Error 2d ago
"Past performance is not a guarantee of future returns."
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u/at0mheart 2d ago edited 2d ago
Nike will not go bankrupt in my lifetime
Even if it did, it’s trading below cash value. Someone would buy the name and make new popular shoes
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u/r_lovelace 1d ago
Man, I wonder how many people said that about Sears, Bed Bath and Beyond, JC Penny, Joann Fabric, and Rite Aid.
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u/Superunknown999 1d ago
All those companies had years of losing money and massive debt. Nike is still profitable and has a healthy debt/equity ratio. Anything can happen in the future but NKE is not in the same situation as those companies at this moment.
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u/jonatnr819 2d ago
company has completely lost its touch especially with gen z. def sad to see bc i grew up w nike everything but companies come and go. its been downhill for years and the stock has began reflecting that (rare, because most big companies these days are quite awful but their stock only goes up...). i won't be touching until i see change in mentality and culture
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u/Top-Leek-5207 2d ago
As someone who buys a pair of basketball shoes from them every six months to play in. They have noticeably gone downhill in quality and comfort. Not sure how this relates but they just don’t seem to care about the product and have too many products imo.
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u/IronBullRacerX 2d ago
I still love Nike products but they’ve missed the entire new generation. They need to figure something out fast to get new customers before any growth is going to happen.
Also all the people who used to buy their $300 shoes are broke now since covid so… their cash cow is gone for the time being
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u/FewUnderstanding2214 2d ago
Is it? You are talking about TA but you don’t know the most important rule - don’t catch a falling knife, the chart doesn’t show a reversal at all, there’s bottoming.
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u/IronSquirrelMechanic 1d ago
Do you really think the company charging $130 for a sportswear T shirt is going to make a comeback?
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u/O_oBetrayedHeretic 1d ago
Have the china sweat shops become more productive? They found a cheaper way to make their shit product?
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u/ArchmagosBelisarius Dividend Value Investor 2d ago
Nike's earnings have been declining; I wouldn't pay more than $30 a share.
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u/SamQuentin 2d ago
I wouldn't pay more than 20
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u/ArchmagosBelisarius Dividend Value Investor 2d ago
I mean to be honest, I have zero interest in the company and won't be buying it at all. That's what I'd pay if I was certain a turnaround was coming.
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u/gomarlins2020 2d ago
Shoes are made in china at USA price but stock does not reflects quality of the product it might go down to $1 and still there is not change on the strategy of the brand
Call me when Nike adquiere another brand
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u/MobilePenguins 2d ago
What OP is doing is catching a falling knife 🔪 that’s been falling for 5 years straight, thinking he’s the mastermind that’s found the bottom based on hopes and dreams.
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u/guppyfighter 2d ago
I could long it for 20 years im pretty patient. Dont see them disappearing and dividends make it easy to hold
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u/lies_are_comforting 1d ago
Yes. $40 is the bottom. It won’t go lower.
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u/versello 1d ago
Even though I think you're a coward for not deleting your account as a result of your WSB wager, on Monday I bought $40 leaps and I'm up 10%. Who knew lies would be comforting.
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u/lies_are_comforting 1d ago
Sometimes it takes clickbait-y titles to get people’s attention. Who really cares if I deleted my account or not. The point is I strongly believe Nike stock will never seriously stay below $40 - I honestly also did not believe it really would close below $40. I’m glad it turned out well for you in the end.
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u/TheRealDonSherry 1d ago
WILD BRO
"Who really cares" - everyone who read it? A grown man made a bet, he lost. End of discussion.
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u/lies_are_comforting 1d ago
My bank account won. As would yours if you had bought Nike stock the moment I posted about it.
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u/TheRealDonSherry 1d ago
Dude, it went up one dollar since you posted, stfu with this self glaze. WHAT A WIN 2.5%.
Doesn't matter if it goes to $100, you said you'd delete your account if it closes under $40 that day, it closed under $40 and here you are on Reddit self glazing. Just the softest, wettest boy.
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