Nike (NYSE: NKE) stock has fallen another 4%, trading at $39.06 at the time of writing on August 18, a level that marks a new 52-week low and the lowest intraday level in roughly 12 years.
With the S&P 500 also down 0.4%, and the Dow Jones Industrial Average falling 0.5%, the broader market provided little support, but the latest selloff was also triggered by weaker-than-expected results from rival On Holding (NYSE: ONON).
The Swiss sportswear company reported second-quarter sales of $1.07 billion, below the $1.11 billion consensus estimate, while its full-year 2026 revenue outlook of roughly $4.39 billion to $4.50 billion also fell short of investor expectations. As such, the results appear to suggest that slowing consumer demand is beginning to affect even brands that have enjoyed strong recent momentum.
As a result of the consistent downward trend, Nike has lost nearly 80% of its market cap over the last 5 years as it dropped from the record high of $177.51 in November 2021.
Nike stock continues to plummet
On Holding results prompted investors to reassess the broader athletic footwear sector. While On is still in an expansion phase, Nike has been under pressure for the better part of a decade now, which is making investors increasingly skeptical about when, or if, it can recuperate.
Currently, the Asian market remains one of Nike’s biggest challenges. In fiscal 2026, Nike generated $5.85 billion in revenue in Greater China, down 11% year over year, or 13% on a currency-neutral basis. Digital DTC sales fell 29%, footwear revenue declined 14%, and operating profit dropped 20% to $1.28 billion.
The weakness suggests that Nike’s problems extend beyond a temporary slowdown in consumer spending. For comparison, domestic brands, such as Anta and Li-Ning, continue to gain ground due to what many ascribe to a better understanding of local consumer practices.
Adding another layer of uncertainty. Chief Accounting Officer Johanna Nielsen is set to resign effective September 4, with Chief Financial Officer David Denton assuming the role of Interim Corporate Controller.
Is Nike stock a buy?
Nike’s long-term chart thus remains firmly bearish. As mentioned, following its record high in late 2021, the pattern has been characterized by nothing but lower highs and lower lows. Certainly, brief rallies in 2022 and 2023 offered some short-term relief, but the broader descending trendline is undisputed.
Market sentiment is accordingly mixed. The latest decline also follows a downgrade from JPMorgan, which revised its rating on the stock from ‘Neutral’ to ‘Underweight’ on concerns that Nike’s ‘Win Now’ strategy could weigh on future profitability.
Some analysts, such as Gurgavin Chandhoke, CEO and founder of uINVSTE, argue that shares are overpriced even at their current levels.
On the other hand, the Wall Street consensus remains slightly more bullish, with NKE currently enjoying a ‘Moderate Buy’ consensus from a total of 25 research notes over the past three months, per TipRanks data available at press time.
Collectively, the 25 analysts assign an average Nike stock price target of $50.29, which implies a roughly 28% upside from the current price.
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