Nike's stock plunge is relentless

Nike's stock plunge is relentless

Brian Sozzi · Executive Editor

Mon, August 17, 2026 at 9:24 PM GMT+3 2 min read

• NKE +2.48%

A Wall Street that's mostly bullish on Nike (NKE) continues to be proven dead wrong about the athletic-wear giant's stock price.

Nike stock collapsed to its lowest level since September 2024 on Monday, dropping more than 4% to below $40, per Yahoo Finance AlphaSpace data. The stock has crashed about 78% from its all-time high in 2021.

To the non-Wall Street number cruncher, Nike's stock tanking makes perfect sense.

The only thing Nike is "just doing" is serving up stretches of weak quarters and outlooks.

(NKE )

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40.06 +0.97 (+2.48%)

At close: August 18 at 4:00:02 PM EDT

In late June, Nike reported fiscal fourth quarter revenue of $11.0 billion, reflecting a 1% decline on a reported basis and a 4% drop on a currency-neutral basis.

While the company's diluted earnings per share of $0.72 appeared significantly stronger year over year, it was heavily distorted by a massive $0.52 per share one-time benefit from an expected tariff recovery.

The company projected fiscal first quarter revenues to be down by a low-to-mid single-digit percentage. It reiterated flat earnings per share growth over the next three quarters, excluding benefits from tariff recovery proceeds.

"No hints yet that revenues can turn positive in the foreseeable future — we don't see a clear reason to expand the P/E [ratio] from here (from 22x FY27 consensus EPS)," Evercore ISI analyst Michael Binetti said in a note.

The company continues to struggle with execution issues under CEO Elliott Hill, who recently replaced the company's CFO. Changing sneaker preferences, cautious consumers, and hungry competitors like On Holding (ONON) continue to hold the company back and delay any signs of a turnaround.

Hill boomeranged back to Nike as CEO in October 2024.

"You gotta get back into the roots," NBA star and longtime Nike-sponsored athlete LeBron James said about the brand's struggles in a Boardroom interview on Yahoo Sports.

"You gotta get back to being out in the inner city, having runners … When I was coming up, you had people that was literally out in the communities talking to these younger generations, asking them what they like, what they don't like," James added.

Brian Sozzi is Yahoo Finance's Executive Editor, host of the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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