Nike Stock Keeps Falling: Should You Buy the Dip?
The company is struggling mightily in foreign markets like China.
The apparel industry is hypercompetitive and participants have to deal with boom and bust cycles, constant new entrants, and changing trends seemingly every year. One sports apparel company has developed a reputation for strong performance in this industry: Nike (NYSE: NKE). The owner of brands like its namesake, Jordan, and Converse attracts dominant mindshare among athletes and young consumers, leading to growing revenue year after year.
However, some investors are wondering if this reign of dominance is coming to an end. Nike stock is in one of its sharpest drawdowns ever, down 63% from all-time highs set in late 2021. After a burst of growth during the COVID-19 pandemic, Nike's revenue is falling in markets all across the world while competitors take market share. It just brought in a new CEO to help the brand recover, but the calendar year 2025 is shaping up to bring more bad financial news for investors.
Smart investors know that (potentially) temporary weakness for an otherwise strong company can turn into buying opportunities for those with a long-term mindset. Does that make now a good time to buy the dip on Nike stock?
