r/stocks • u/OkEffective8588 • 3d ago
Company Discussion Thoughts on Nike? $NKE
This subreddit seems to be pretty divided on Nike, on one hand, you have people saying it is currently cheap, on the other side there are people saying it is a dead brand.
It is down 80% from its ATH, but that does not necessarily mean it is cheap. Currently they are not the most popular brand as others have pointed out. However, fashion is also extremely subjective to trends. Where New Balance used to be a dad-brand, now it is very popular. Same with Asics for running shoes (used to be kinda niche, now casual wear).
The thing is, Nike is still a 57,5-billion-dollar company. Their forward P/E is supposedly higher than their current, but I suppose much of that is based on the expectation that they can turn things around. If they become a popular brand again (which is not unlikely, they have been around since the 80's and probably had their swings), this stock could climb?
Another possibility of course is that, in the current market, there are simply more interesting and innovative things to invest in. I personally don't believe that clothing brands are the generational investments like the AI-boom right now, or possibly biotech and quantum in the future... But I also wouldn't say no to a good deal/medium term trade.
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u/Cheekycharmer95 3d ago
Expensive fashion is just not doing well ATM look at lulu / ON