Nike stock sinks, receives six downgrades

Shares of Nike (NKE) continue to fall after the company posted its latest quarterly report, slashing its full-year guidance. Six different financial firms, from Morgan Stanley to Barclays, issued a downgrade on the stock.

Yahoo Finance Anchors Josh Lipton and Julie Hyman break down this latest development for Nike and what it could mean for the company moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino

Video Transcript

Let’s get to a call of the day Now.

Nike gets six different downgrades today.

That’s including from Morgan Stanley.

The analysts are highlighting another disappointing quarter and reducing the outlook for the shoe company.

So I mean, Nike.

Just those shirts just nose diving today, Julie Stock and the stock already was well in the red over the past 12 months, heading in into the print.

But you can see it cratering there.

Reverend in the fourth quarter fell 1.7% and missed.

They offered a full year outlook that missed.

And as we noted, the street’s been responding.

Morgan Stanley goes to equal weight, lowers the target of 79 saying the company’s strategic changes leave us with low visibility into its P and L. Um, a decline of 19.5% or more in just today’s session will be a record one day decline for Nike Here.

What’s going on?

Well, Nike basically over the past few years, according to analysts and probably itself has not been innovating enough, has not been refreshing its lineup and has not been necessarily performance forward enough with its footwear.

And so it is trying to do that it’s going through, um, sort of a trans formation period.

I talked to Anisha Sherman at Bernstein this morning, and she pointed to this sort of uncertainty around whether these new models are going to work and be appealing.

The people are spending as much now, but they’re willing to spend if they feel it’s worth it if they feel it’s something fresh and interesting.

And Nike is sort of fallen down on that job as of late.

So I thought that was interesting.

Jim Duffy over at Stel was one of the other downgrades that we saw, uh, for the here.

And basically, he said, we can’t support a compelling upside case until growth inflexion becomes more tangible.

It seems like there is some optimism that they can improve at some point.

It’s just that they don’t seem to know when.

Yeah, I mean, when you see a print and a re I mean look at down 20% you’d also wonder whether you know how many folks on the street.

But also investors have questions about whether this is the C suite.

This is the management team that’s actually gonna turn this thing around and stick the landing that