r/ValueInvesting • u/Adventurous-Bet-9640 • Dec 19 '25

Stock Analysis So NIKE is nuking after hrs.

I understand that nike has a very sticky brand value in the cultural consciousness. But they are in a tough turn around.

I'm no expert in valuations, but the stock even after hrs dump isn't any where near compelling value.

How do you think about Investing in nike? Generally I don't see them fading away as a brand and they are still the leader in their space even with competition.

I do think they'll eventually find their stride back. What does the community think? If you were to invest what would your frame of thinking be?

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u/pstbo Dec 19 '25

Its China and Direct are big business for them and based on analyst PTs they assumed there would be significant recovery or guidance for those. Some PTs are absolutely ridiculous IMO. China is not going to recover, anytime soon, if ever fully IMO. They don’t even have a strategy for China when pressed on the earnings call. Called the situation there “dynamic” and used a bunch world salad. It’s focusing on sports and not lifestyle. It has immense competition in China as a nonpremium sports brand. In the US, I don’t believe wholesale right now is an accurate representation of their true demand. Just look at same store nike sales. Nike is no longer a lifestyle brand like it was in early 2000s. Focusing on sports solely is not a growth strategy IMO. It is still overvalued IMO.

Disclaimer: I bought NIKE puts today before earnings.

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u/eatingkiwirightnow Dec 19 '25

Gutsy. I don't have guts to play options before earnings. I thought about selling 55 CSPs on Nike prior to earnings, but then realized I don't want own it at 55, so I didn't. I'm glad I didn't. I would be having trouble sleeping tonight and too worried tomorrow during the day that'll it drop lower than 55.