Berkshire Swoops in on Beaten-Down Nike

Nike's (NKE) stock has plummeted 75% from its peak of $169, with rival On Holding (ONON) also down 42% year-to-date. The decline in both stocks exposes the pain in the sportswear sector.

Analysts point out that Nike's recent earnings beat was inflated by a one-time tariff windfall of $986 million, masking slipping revenue and a 17% drop in sales in China.

CNBC host Joe Kernen suggested that Berkshire Hathaway (Berkshire) could be a potential buyer for Nike due to its iconic brand, dividend aristocrat status, and $350 billion cash pile.