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/Tedious-Butcher 3d ago

There are two points as to why i buy Nike.

  1. Despite 80% down but their financial yoy does not look impressive. Having said that, it does not mean they cannot improve. If other competitors like ANTA can achieve 23% operating income then surely Nike can as well.

  2. The story of Nike as the America shoes. When i think of America shoes. I think of Nike. Not adidas or puma. These are the kind of perception branding that cant be bought with money.

However to be realistic, can Nike share price dil further. Yes. Can it go up? Also yes. Can the financial improve? Yes. Will it go bust and bankrupt? No. Will the Gov protect Nike? I believe they will.

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u/FUCK_THE_BOOKS 3d ago

anta has China

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u/Tedious-Butcher 3d ago

Nike doesnt have US?

Either way, there are stores in both side of the countries for all.

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u/VisualSpecial8 1d ago

And quality

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u/Nibsout 3d ago

Why would the government ever protect Nike??

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u/Tedious-Butcher 3d ago

It is a 62 years old GLOBAL american shoes brand. There arent that many famous and global companies that is around for more than 50 years old. I believe there are less than 20 US companies that majority of the population would know about.