Nike's Downward Spiral: A Rare Opportunity for Long-Term Investors

Nike's stock has plummeted nearly 48% over the past year and more than 40% this year, with prices reaching levels last seen about a decade ago.

Several major banks, including Bank of America and JPMorgan, have downgraded Nike's rating and set negative price targets, citing concerns such as near-term revenue declines and inventory overhang.

However, the company has weathered similar downturns in the past, with its long-term data showing that it fell about 30% between 2015-2016, dropped again in 2022, and slid nearly 30% in 2024.

Nike still owns one of the most recognizable brands in the world, has deep relationships with athletes and digital platforms, and is continuing to spend heavily on product and marketing.