Nike Shares Plummet 78% Amid Prolonged Decline

Nike's stock price has plummeted by roughly 78% since its peak in November 2021, erasing over $200 billion in market value. The company's recent performance has been marred by a decline of 38.64% year-to-date and 49.21% over the last year.

The stock's technical outlook remains bleak, with all major moving averages acting as overhead supply. Momentum indicators offer little relief, with the RSI at 35.69 and the MACD at -0.22.

Nike's direct-to-consumer pivot has been identified as a key contributor to its decline, with operating margin falling from 13% to 8%. The company's efforts to rebuild wholesale relationships and reposition itself around sport-led categories through its 'Sport Offense' model have not yet shown significant results.

JPMorgan analyst Matthew Boss downgraded Nike to Underweight, warning that the company's turnaround will take longer than expected. Boss revised his earnings estimates for fiscal 2027 and 2028, with a stabilization year in sight but no clear growth prospects.