Why has Nike stock been dropping?

July 6, 2022

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Nike ($NYSE:NKE) has been one of the hottest stocks on the market for years. But lately, its stock has been on a bit of a roller coaster ride. So, what’s going on with Nike stock? Since the beginning of the year, Nike’s stock is down almost 40%. That’s a significantly larger drop than both the S&P 500 and the Consumer Discretionary ETF it belongs to. So, what’s the reason for Nike’s sudden drop in stock price? One of the biggest factors appears to be weakness in Greater China. For many years, China has been one of Nike’s growth engines. With the exception of Apple, there have not been many others like Nike. However, Nike’s sales in Greater China have been weak recently. This weakness in China appears to be one of the main reasons behind Nike’s recent stock drop. So, what does the future hold for Nike? Only time will tell. But, given Nike’s strong brand and long history of success, it’s likely that the company will continue to be a force to reckon with in the years to come.

Market Reaction

On Tuesday, NIKE stock opened at $100.4 and closed at $104.3, up by 3.1% from previous closing price of 101.2. This was likely due to the company’s strong earnings report on Monday, which showed better-than-expected profits and revenue growth.

VI Analysis

One potential financial risk for NIKE is its high level of debt. This high level of debt could make it difficult for NIKE to make interest payments on its debt, and could also lead to NIKE defaulting on its debt. One potential business risk for NIKE is its dependence on the US market. This dependence on the US market could lead to NIKE’s revenue and earnings being adversely affected if there is a slowdown in the US economy.



The first is that the company has been facing some difficulties lately, including a drop in sales in North America and Europe. In addition, Nike has been embroiled in a number of controversies, including allegations of sexual harassment and discrimination. These factors have led to some investors losing confidence in the company, and as a result, the stock price has dropped. However, it is worth noting that Nike stock is still fairly strong, and it has actually risen 3.1% in the past day. This indicates that investors are still confident in the company, despite its recent difficulties. It is possible that Nike stock will continue to rise in the future, as the company continues to be a leader in the athletic apparel industry.

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