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    Buy Nike. It might just do it !

    Nike (NKE) – Q4 2024 Earnings on June 27
    Despite its 45% drop from 2021 highs and a 12% dip this year, there's a lot to be optimistic about. The post-pandemic shift and competition from brands like Hoka and Lululemon have hit Nike, but it's streamlining operations to save $2 billion over the next three years.

    Nike has a strong history, with an 11% average sales growth from FY21 to FY23, and it's expected to post 1% revenue growth in FY24 and FY25. Adjusted earnings are also projected to rise by 16% and 5%.

    With the Olympics coming up, Nike's stock usually benefits from the increased visibility and marketing opportunities (Nike CEO said it will be in the highest investment in marketing in the company's history). Plus, Nike's recent underperformance means it's trading 20% below the average price target and 45% below its all-time highs at around $95 per share. It's also at a 50% discount to its 10-year highs.

    Nike has beaten earnings expectations in the last three quarters, and I believe it will report positive earnings again, which should drive the stock up.

    Hedgefunds already noticed that and are going all in with bullish positions. Examples of those are : Bridgewater Associates (biggest hedgefund in terms of aum), Soros Capital Management, Sands Capital Management, etc.

    I am going all in.

    My position: Single leg long calls at $110, expiring on September 20th.

    Buy Nike. It might just do it !
    byu/Necessary-Bag-1348 inwallstreetbets



    Posted by Necessary-Bag-1348

    View 29 Comments

    29 Comments

    5. Redditaccount2322 on

      “Highest investment in marketing in the company’s history” sounds like they spend a lot of fucking money on operating expenses in the hope it generates future profits. If anything you should be looking 2 quarters out – your calls expire right before their next ER… which is probably why you bought them because they were cheap

      That being said – retail is struggling and the Nike brand has fallen off since their dominance over the last couple of decades. They could be primed for a turnaround. I’ll buy in for oct calls if they pull back more

    6. zhumail134 on

      I am about to buy put for the coming earning, looking for $85 range , people are just tired of their product, all the shoes just sitting and mass return are coming. I resell sneaker , personally return hundreds of pairs this year since they are losing value bigly, people just don’t buy it, their inventory piles up , Nike recently raise the retail price in all the product line, but eventually sell them by huge discount, still can’t sell . I would definitely stay away calls, let alone 110s

    14. bust-the-shorts on

      Air Jordan’s are not the growth market they used to be. Women’s apparel is king and Nike is not the leader

    16. AnoToll on

      Have had a long position since 2018 and added to it recently when it dropped to low $90 range. One of the strongest brand recognitions in the world and has a hand in every sport/top athlete.

    18. RevolutionaryPhoto24 on

      I have it on a watchlist for ballast and a bit further out. I don’t like the sound of all that advertising spending, tbh. And the Olympics, eh…

    23. wykav on

      Funny, I’ve thought about it too. I started looking a few days ago. They’ve been beaten down for months. But I do think this is their floor. With the Olympics coming up, there might be more interest.

    24. DJmelli on

      All runners in my area wear hokas or on cloud. Nike is the default for ppl who don’t care about shoes I feel like

    26. joshalleniselite on

      Sold it about a year ago. Best decision I’ve ever made. Just about everything they make has plummeted in quality

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