👟 Nike Down 80% — Bargain or Value Trap?

D1ane
10-09 15:29

Nike ($NKE) has fallen from its 2021 peak of $179 to around $34, wiping out more than $210 billion in market value. Now, Goldman Sachs’ reported purchase of 4.9 million shares has investors asking whether the sell-off has gone too far.

📉 Why consider buying?

✅ A globally recognised brand with strong sports and lifestyle appeal.

✅ Potential upside if management successfully turns the business around.

✅ A lower share price could offer an opportunity if earnings recover.

⚠️ Why be cautious?

❌ Nike expects revenue to decline by a high-single-digit percentage in FY2027.

❌ Competition and weaker demand are putting pressure on sales.

❌ A falling share price doesn’t automatically mean a stock is cheap.

Goldman’s buying is interesting, but institutional purchases don’t guarantee a rebound.

My view: Nike could be a turnaround opportunity, but I’d want to see sales stabilise and profitability improve before getting too confident.

Would you buy Nike at these levels, or wait for clearer signs of recovery?Not financial advice. Do your own research before investing.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • AgathaHume
    10-09 16:12
    AgathaHume
    I’d lean bargain here. Brand equity still matters, and at around 34 the market looks like it’s pricing in a way uglier earnings path than a normal turnaround.
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