April 11, 2025 — Shares of Nike Inc. (NYSE: NKE) have plunged nearly 69% from their all-time high of $179, raising eyebrows across Wall Street and prompting a classic investor dilemma: Is it time to buy the dip, or is this just the beginning of a longer downward spiral?
The sportswear giant, once considered untouchable in its industry dominance, has faced mounting challenges in recent quarters. Supply chain bottlenecks, shifting consumer behavior, rising competition from brands like On Running and Hoka, and a sluggish China recovery have all weighed on the company’s performance.
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What Went Wrong?
Nike’s direct-to-consumer pivot, once seen as a strategic masterstroke, has stumbled amid falling digital sales and underwhelming retail performance. Meanwhile, cost-cutting measures and layoffs have yet to inspire confidence in a meaningful turnaround. The company recently issued a cautious outlook for fiscal 2025, forecasting mid-single-digit revenue declines and margin pressures continuing into the next quarter.
Investors responded swiftly, with NKE stock sliding further after its most recent earnings report. Once a staple of growth portfolios, Nike has quickly turned into a high-profile underperformer, even as broader indices like the S&P 500 hover near all-time highs.
Buy the Dip?
Not everyone is ready to count Nike out. Some analysts point to the brand’s global reach, strong portfolio of athlete endorsements, and renewed focus on innovation ahead of the 2025 Summer Olympics in Paris as potential catalysts for recovery.
“Nike still owns some of the strongest brand equity in the world,” said one portfolio manager. “If they can execute on margin recovery and reignite demand in key regions, especially China and North America, there’s upside from here.”
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At current levels, Nike trades at a forward P/E ratio significantly lower than its historical average. For long-term investors, this discount may represent a rare buying opportunity—provided they believe the company can navigate its near-term headwinds.
The Risks
Still, the risks are real. A prolonged slowdown in discretionary spending, continued competition from younger, faster-growing rivals, and brand fatigue among Gen Z consumers could stall any bounce-back. For the time being, Nike is in prove-it mode.
Bottom Line
With Nike down 69% from its peak, the stock is undeniably cheap by past standards. Whether it’s a screaming buy or a value trap hinges on the company’s ability to adapt and reignite growth. Investors considering buying the dip should brace for volatility—but may be rewarded if Nike finds its stride again.
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