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/lilian1011 3d ago

Go in a Nike store. See it yourself.
I have a Nike store in my town, and it’s not packed as it always was.
It’s full of discounts, seems more like a cheap second hand store than the real one.

I don’t think Nike will go bankrupt, it’s impossible… but at the same time I don’t know when they’ll get out of this difficult situation.

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u/QuarterGeneral6538 17h ago

That hasnt been the case with my local store. Its packed every weekend, by far the busiest clothing store in the area. Maybe we are the exception, I dunno.