Will the stock go up or down after oct.1? Afraid of another fall like last time
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+1
I see Nike stock being stuck in a malaise for the next 2 to 3 years. That’s how long the cultural and leadership issues will take to resolve itself with the right leadership. It can’t be fixed by simply resetting the clock back to 2018. It’s a whole new world …. look at what has happened with women’s sports as an example. Nike does need to go back to fundamentals which is focusing on athletes and athletes only. We pivoted way too much into being a lifestyle and fashion company. This pivot turned us into a marketing/creative agency than one that actually makes products for athletes.. a company that is constantly chasing cool. We used to make stars now we chase stars and we’re to the point where we’re giving streamers deals. Let’s get back to the original vision making everybody feel like an athlete … double down on sports and remember if you have a body, you’re an athlete.
And just to add my own perspective, I honestly think the market’s overvaluing NKE. JD wasn’t the only issue here. Leadership is weak across several top layers. The culture’s a shadow of what it used to be, and there’s no cohesive direction everyone is buying into. I’m not sure if EH and the other old guard they decide to bring back in have the energy and inspiration needed to fix this.
It probably won’t change much at all. The current stock price is based less on the earnings potential of the current and next 1-2 fiscal years, and more a reflection of the expectations the marketplace has with the leadership changes taking place now and the trajectory it will put the company on over the next decade plus. That’s what the market is trying to figure out how to price.