Nike Stock Falls to 7-Year Low, Market Cap Drops Below $100 Billion

Nike's stock has plummeted to a 52-week low, closing at $64.92, a significant decline amid a challenging market environment marked by layoffs, a CEO change, and a weak sales outlook. The company's shares have dropped 30.56% over the past year, with concerns about its turnaround strategy and the impact of new U.S. trade tariffs contributing to investor apprehension. CEO Elliott Hill, who returned to the company in October, aims to revive Nike's core markets and improve retailer relationships, but analysts have reacted with lowered price targets following disappointing quarterly earnings. While the company reported revenues of $11.27 billion for the last quarter, this figure represented a 9% decline year-over-year, prompting management to forecast a revenue drop in the mid-teens for the current quarter. In contrast, competitor Adidas has rebounded under new leadership, showcasing a stark contrast in performance between the two brands. As sentiment among retail investors remains mixed, Nike's ability to innovate and adapt will be crucial for future growth.